Category: Taxes

Save money when paying taxes

Taxes

Why You Shouldn’t Want a Huge Tax Refund

For the umpteenth time, I have to rail about tax returns and big tax refunds as I always do at this point in the year! Right now is the time of year taxpayers are thinking about their taxes and that long awaited tax refund. Nearly 72% of taxpayers received a tax refund last year, and the average direct deposit tax refund was close to $3,000 according to the IRS. And that’s even in the real life case that so many filers feel like their tax refund was actually a little low.

If you get huge tax refunds, I have one question for you: why? A smaller tax refund can mean you get your money every month instead. Here's how to do it.

But since I opened up the box, I now have to ask the question:

Why does getting a tax refund (of your own money) make you so happy?

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Retirement, Taxes

How to Avoid Paying Income Tax in Retirement

Everyone has to deal with taxes; they’re oftentimes unavoidable. But if you play your cards right, you can spend as little money as possible on them. You may even be so lucky as to avoid paying income tax altogether in retirement and get this… the government might actually give you money when tax season rolls around in a little something called the EITC, the Earned Income Tax Credit.

You can maximize your finances if you avoid paying income tax in retirement. Here are 9 types of money that aren't taxed, plus money you might get for free!

Retirement won’t save you from the tax forms and some headaches, but there is money you get that Uncle Sam can’t touch, as long as you play by the rules. And you have to know and understand the rules to win this game. So pay attention now and learn how you can actually avoid paying any income taxes on these things when you hit retirement!

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Taxes

2019 Year End Tax Tips That Help Your Bottom Line

Amazing at it may seem, 2019 is quickly fading and it’s actually time to start making those year end tax moves to get ready for April…now!

As we're reaching the end of 2019, it's important to follow these year end tax tips now to make sure you're in good shape to file your taxes next year.

As you’re putting the finishing touches on your financial and tax planning for this year, there’s a lot to review. The second tax year under the Tax Cuts and Jobs Act (TCJA) of 2017 has brought to light some additional considerations that were either unclear or overlooked in 2018. Sometimes, when laws like this one come along you learn from them slowly. So here are some year end tax planning strategies for individual taxpayers, Schedule C taxpayers and business owners to carefully consider.

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Taxes

New Tax Form for Senior Citizens for 2019

Just when you have adjusted to the new tax forms of 2018, you may be in for a surprise if you are over age 65 for your 2019 tax return. It’s the newest twist for seniors and it is the new 1040-SR senior tax form that may in fact be the perfect thing for seniors to use!

There's a new senior tax form coming for your 2019 tax returns. Form 1040-SR has some good senior benefits, but there are some limitations, too.

Fifteen million of the 150 million Americans who filed taxes last year were seniors, so filing an IRS tax return is likely to be simpler next year for about 10% of those who do so. To use this form, you have to be 65 prior to January 1, 2020.

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Retirement, Saving & Investing, Taxes

ESPP Exit: What’s Your Financial Advice for Us?

I can’t help but realize that writing this blog each week almost always involves me giving some advice about some money issue. Sometimes it has been very specific on things like saving money at the grocery store or preparing yourself for retirement and at other times it’s been more spiritual like when I refer to things that can motivate you and good money habits to develop that help protect your financial well-being.

My wife and I need to make a decision about what to do with her old ESPP (Employee Stock Purchase Plan) shares. What's your financial advice for us?

Sometimes when I look back on what I’ve written, I realize I definitely have had a tendency to pontificate and yes, even ramble. I’m being kind to myself more than a little here. I really think writing a 2,000+ word post can lose even the most diehard readers. Who has the time for that much stuff to read on a regular basis?

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Taxes

It’s Time to Get Your Federal Taxes in Order, Part 2

Getting ready for your next tax return due by April 15, 2019 should be on your mind as this year ends. That’s why Part 1 and Part 2 of this post are so important! So here is Part 2, but first…

There have been some important changes in the tax law, so now it's time to review your 2018 federal taxes and make any last-minute necessary moves.Stop and Think

Before splurging on holiday gifts this year, ask yourself if you’re going to get a big or far bigger tax bill than you’re accustomed to next year. Or if you get a tax refund, is it likely to be smaller? Millions of Americans won’t get their usual tax refunds next year because of the confusing tax law changes.Continue reading“It’s Time to Get Your Federal Taxes in Order, Part 2”

Taxes

It’s Time to Get Your Federal Taxes in Order, Part 1

This year, for 2018, it’s more confusing than ever to try to get yourself ready for income tax season and decide on your deductions, if any, because of the changes that the tax bill passed earlier this year in congress. So you should start to get your federal taxes in order now.

There have been some important changes in the tax law, so now it's time to review your 2018 federal taxes and make any last-minute necessary moves.

Check Your Withholding

The IRS says that checking your withholding can help protect against having too little tax withheld and facing an unexpected tax bill or penalty at tax time next year. The average tax refund was $2,825 in 2018, up $9 from 2017, based on IRS data.Continue reading“It’s Time to Get Your Federal Taxes in Order, Part 1”

Personal Finance, Taxes

2018 Finances: How Do They Look, So Far?

One of the very most important things you can do when it comes to your personal finances is to take a good hard look at how things are going right now and make some adjustments whenever necessary.

So we're 5 months into the year, and now is a good time to see where we are when it comes to finances. Today's post looks at how the new tax law is affecting income, and how inflation is affecting expenses.Many years ago, when I was a young man working as an assistant buyer at Macy’s, I learned about making a good plan and how to evaluate and then re-evaluate how that plan was doing. The most important part of that concept isn’t a requirement to make changes after evaluating, but rather it’s the actual necessity to take a close look. Even if you don’t make a change in a plan, looking and doing nothing is actually doing something! Not looking is doing nothing and that can hurt your financial plans.

That’s why today I want to look at where we are in 2018, so far.Continue reading“2018 Finances: How Do They Look, So Far?”