A sandwich. Two pieces of bread that hold together our favorite deli meats or salads, lettuce, tomato, and an embarrassing amount of condiments.
Sandwiches are a lot like tax returns.
Sandwiches, like tax circumstances can be broken down into two categories – not a lot of fuss and a whole lot of fuss.
Think classic sandwiches – peanut butter and jelly, tuna salad, BLT. We know the components and we rarely change them.
Classic sandwiches are no-fuss tax returns.
A simple tax return is generally comprised of one maybe two W-2s or social security income, an interest statement from the bank, and perhaps a property tax bill. Everything is straightforward and easy to swallow.
Artisan sandwiches, while delicious, reach into unknown lunch realms. More often than not you’ll have to read the sandwich ingredients five times and seek advice from the server before you can commit to a zesty Sloppy Joe, a fried brain sandwich, or a donkey burger.
These sandwiches clearly have a bit more fuss. Complex tax returns take more time and thought before the table can be cleared.
These types of returns generally come with more varied sources of income – shareholder, rental, and investment that come with different expenses or ingredients so to speak. A self-employed individual will also have a complex collection of income and expenses that may require a lot of hunting and pecking.
Whatever sandwich you may enjoy know two outcomes exist and they are not exclusive to the not a lot of fuss and a whole lot of fuss categories. You’ll either get a refund or you’ll owe the government money. You’ll either enjoy your lunch happily or end up in the bathroom.