Way back, after proudly surviving my first formal accounting classes, I was challenged by a CPA buddy of mine (Tom K) with a mind numbing quiz. If you are so smart Mr. Tim, then let me know, what’s a debit and what’s a credit? I proceeded to launch into a wonderful and lengthy rationalization...

Do you understand the difference between a tax reduction and a tax credit? This story should explain the difference. A self employed customer ( let’s call her Debbie ) came to me to prepare her tax return. She was quite upset as she had a balance due of $400. She could hardly stand the idea...