The Tax Man Cometh
It is that time of year again! Tax time can either be a time of excitement (anxiously anticipating that big refund!) or anxiety (wondering how much you will have to pay). Here are a few tips to make the Tax season less stressful and more financially beneficial:
Do not pay too much to have your taxes done! United Way and AARP offer FREE tax preparation for people under whose income is less than $66,000.00 per year.
Here is the link from IRS.Gov
Income below $66,000: Free File Software
- File your taxes with free, easy to use software
- Free state return options are available
1. Use the Free File Software Lookup Tool to find free federal and
free state return options
2. NEVER do the cash advance to get your refund faster! Be patient and save money by not taking out a loan and paying fees just to get your money a little sooner. It is not worth it.
3. Refunds are wonderful, but think strategically about how to spend your refund. I recommend putting at least 25% of your refund into Emergency Savings! Then pay off existing debt. Finally, use a little of your refund for enjoyment. Remember: Buying fun toys is nice but not at the expense of having emergency funds for the future.
4. For the Business Owners and the self-employed out there, remember that tax time can be a difficult balance. Deductions can be great in reducing your taxes or even getting a refund, but if you are planning to buy a home you will need to have positive income reflected on your tax returns to qualify for a mortgage.
That sums it up. Please contact your counselor with any questions and I hope the Tax Man is nice to you this year!