Ahh, tax season. Everyone's favorite time of year.Okay, to be honest, I actually enjoy the process of doing my taxes. I like sitting down and seeing how the numbers fall out, and how well I estimated my withholdings. My goal is always to break even, meaning that I don't get a huge refund, but I don't owe a large amount either. What is a tax refund? For a lot of people, however, they plan for and look forward to a large tax refund. Last … [Read more...]
What to Do If You Forget to File Taxes
What to Do If You Forget to File TaxesI am not sure how you would forget to file taxes, but if you do, there are steps to remedy the offense. Here is a rundown of what to do if you have indeed forgotten to file taxes or were thinking of skipping out on this basic part of financial life. Hint: it’s not a good idea, but it can be fixed.Do Not PanicFirst thing’s first. Understand that the IRS very rarely pursues criminal action. It … [Read more...]
Spring Cleaning Your Finances
Spring is here, and with it comes spring cleaning. Every year, I'm determined to get my house in order. Every year, I fail, mostly because I'm tackling much too large of a task. But I can break the task down into smaller projects. This year, one of those projects is to spring clean my finances. Play along with me and spring clean your finances as well! Task One - Shred Those Old Documents! Every so often, various financial paperwork … [Read more...]
How Do Income Taxes Work?
Happy Tax Day! Because April 15 fell on a Saturday this year, US tax returns weren't due until April 17th. But why do we pay our taxes on April 15? And while we're talking about it, how do income taxes work anyway?Federal income taxes were created by the 16th Amendment to the Constitution, which says "The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several … [Read more...]
What to do with a large tax refund
Your 2016 tax return is due April 18, and by now, many of you have already finished filing your returns. Why wait til the last minute, especially if you're expecting a refund? Let's say you're getting a decent amount of money back (more than enough to buy you a meal at a casual restaurant). What are you going to do with your large tax refund?First and foremost, pay down those high interest debts, especially consumer debts like credit card … [Read more...]