4 Reasons Teens Should Fill Out Their Own Tax Return

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Tax season is upon us all, not just for us adults, but also for our children with part-time jobs. I was reminded of this fact when I opened the mailbox and found my son’s W-2. He wants to get his taxes done as soon as possible as he knows he will likely get a refund. I could just sit down and quickly pound out his taxes, but I want him to be involved in the process. There are several reasons kids should be involved in the process of filing their taxes. Understand Amount of Taxes Paid Teenagers typically looks only […] Read more »

7 Things You Need To Do Your Taxes

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The end of January signals the beginning of a dreaded activity for many; doing your taxes. For years I procrastinated, spending more time worrying about it than actually doing it. Doing upfront prep work gathering all the documents you need to do your taxes is the key to making the process as easy and smooth as possible. I take a large envelope, and write on the front each piece of information I need. Normally I start by copying this list from the previous year’s envelope. I put a big square next to each item, and check the box as I […] Read more »

Don’t Like How Your Taxes Turned Out? Change Your Withholdings!

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After filing your tax return, you may be really excited or really disappointed about the outcome. The good news is, if you’re not happy with how things turned out you have the power to make changes and ensure you don’t have a repeat of the same next year. The most common result that would make people want to make a change is if they owed a large amount at tax time. However, if you received a significant refund you may also want to make a change to give yourself a little extra in each paycheck throughout the year. But you […] Read more »

5 Things That Could Affect Next Year’s Taxes

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Tomorrow is the day your 2016 tax returns are due. They have to be filed electronically or post marked or you will likely face a fine from the IRS. For many of us, the 2016 tax season may be behind us, but now is the perfect time to be thinking about 2017. If you owed money to the government with your tax return now is the time to take action to change the outcome of next year’s tax season. Here are 5 things you may do during 2017 that will have an effect on your taxes: Part-Time Jobs My wife’s […] Read more »

Save Money On Your Tax Preparation Software

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Tax season is upon us as W2s, 1099s and interest statements are flooding inboxes and mailboxes.   Some people choose to have a tax professional do their taxes, while many are able to save a little cash by doing their own taxes using tax preparation software.  But just using tax preparation software may not be the end of the saving money train.  You might just be able to save some extra cash just by choosing the right place to buy your tax preparation software. On my way home from work, I stopped by the electronics retailer Best Buy to pick up […] Read more »

A Sure-Fire Way To Save On Taxes

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Thomas J. Stanley studied America’s wealthy for decades. One of the observations he made was that the top wealth holders, those who kept a larger portion of their income, only realized 3.66 percent of their wealth in taxes compared to 6.7 percent for those those who consumed it. In other words, those who pay less in taxes do so by spending less and saving more. When spending money we pay: Sales and local tax Income tax Property tax If I want to pay lower taxes then follow these three simple suggestions: Consume Less A simple way to save on sales tax […] Read more »

3 Ways to Get the Most From Your Income Tax Refund

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Over 100 million Americans received refunds in 2013. Undoubtedly, the effects of such windfalls wore off long ago. Were these bonuses used wisely? Here are three ways you can get the most from your income tax refund: 1. Prepare for an Unexpected Event This sounds like an oxymoron, being prepared for something unexpected, but this could be the smartest move for anyone – even someone in debt. Nothing could be smarter than to cash the check and put it into a savings account for emergencies. Let’s face it – something bad is going to happen someday and those things usually cost […] Read more »

Is This The Year I Pay Someone To Do My Taxes?

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I’ve paid a tax professional to do my taxes only once.  It was the first tax season after getting married, and I wanted to make sure they were done correctly.  I remember sitting across the desk from a woman at a branch of a big name tax preparation company answering questions.  After a better part of an hour, I noticed that she wasn’t just entering the information into a form on the computer, but the software was actually prompting her which questions to ask.  I shared my observation with Vonnie on our way home, stating that I could have done […] Read more »

Hotel Room Fees Exposed!

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I opened the hotel room door to find a flyer labeled “Express Check Out” laying on the floor. Our vacation was over, and it was time to settle up with the hotel for our accommodations. I opened it up and sat down on the bed to examine it for accuracy. The daily room rates were as expected, but there were so many different taxes listed that I began to wonder exactly what those amounts were for. Normally I just assume the hotel is charging the government required taxes, but I was feeling especially frisky that morning and decided to verify […] Read more »

The Financial Pothole: Temporary Tax Cuts

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In the opening days of 2013 congress pushed through legislation to avoid the so called “fiscal cliff” preventing the taxes of the vast majority of Americans from going up, and automatic massive spending cuts  from kicking in. The news wasn’t all good, however, as the payroll tax decrease was not extended. This means everyone’s paychecks would be reduced by 2% effective immediately. This is a double whammy for me, as it most likely is with many people, since the first of the year is also when the new rates for my medical insurance kicks in. I received my first pay […] Read more »

Home Mortgage Interest Tax Deduction

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Everybody’s favorite season has arrived. It’s tax season and whether you dread it or not, if you live in The United States, own property or earn an income you are going to have to confront it. When you own property, the best way to reduce your taxable income is to take advantage of the home mortgage interest tax deduction. However many home owners are losing the advantage by not itemizing their taxes. There are a number of tax breaks for home owners and hopefully this post will clear up any confusion you may have with the home mortgage interest tax […] Read more »

Top 10 Dumbest AND Smartest Things You Can Do With Your Tax Refund

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Photo Credit: JD Hancock Top 10 Dumbest Things You Can Do With Your Tax Refund Pay for a refund anticipation loan – Pay hundreds of dollars to get your refund faster? Hmmm. You may as well pay the Government to cash out your retirement fund while you’re at it? Buy lottery tickets – Instead just give it to me. I’ll give you 30% back, while making you believe there is a chance you could win big. Waste it on a new car – New cars lose value as soon as you drive them off the lot…duh! NOT use it to […] Read more »

Refund Anticipation Loans Are For Dummies

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Have you ever paid the outrageous cost associated with getting a Refund Anticipation Loan? Guess what? I have been that dummy! (Get ready! I’m feeling…ummm…in-your-face today.) 😀 I’ve been a dummy more times than I’d like to admit, and while we’re all being honest — so have you. I guess the question is this. Are you going to do something dumb *this year* when filing your taxes? If you have done the refund anticipation loans before and do not see a problem with them, let me ask you this? Do you realize that you are giving money away for nothing? […] Read more »

Tax Refund: Will You Save It, Pay Off Debt, Invest It, Or Waste It?

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As we enter tax season, there are some relevant questions we should ask ourselves about our intentions concerning how we use our tax refund. If any of you are like I was, before I became the Enemy of Debt, you’ve probably spent a few tax returns before the ink even dried on the paper. Now most “good” financial advisers will tell you to change your withholding so that you are not giving the Government an interest free loan each year, but also to give yourself more of your own money each month. I actually believe the same thing, but have […] Read more »