3: Taxes Are Sexy
Updated: Aug 23, 2022
1) Where do you even begin? Who does your taxes? Three choices: DIY, an accountant, or a CPA.
2) If DIY, use a software. The options are all so user-friendly and will guide you.
Free tax software to file: Credit Karma Tax and Tax Slayer.
Estimate your tax refund one of three ways:
3) Refunds are sexy! Especially when you get money back. If you think you are getting a refund, file your return ASAP. The government is holding your money interest-free. Get what’s yours and immediately use it for your benefit.
4) Deductions. Two options: itemized versus standard. Working for yourself can lower your tax bracket. For 2021, tax returns (filing in 2022), the standard deduction numbers to beat are: $12,550 for single taxpayers, $18,800 for heads of household, or $25,100 for married couples filing jointly. These expenses qualify as deductions. If yours are more than the standard amount, then you can itemize.
If you’re investing, consider selling your losing stocks.
Fill up your HSA, contribute 401ks, IRAs and SEP IRAs.
Donate to a charity.
If you own a home and have a mortgage, you can deduct the mortgage interest.
Property taxes can be deducted.
City/state taxes can be deducted.
High medical expenses can be deducted
Gambling loss (to a specific amount) can be deducted.
5) Clean out your closet. You can donate personal, unwanted items and qualify for a tax deduction. Plus, you will feel lighter free from clutter.
6) Think of fun and sexy ways to spend your tax refund. Pay off debt, create passive income through real estate or start a business. Treat someone special. Buy coffee for someone in line behind you or cover their toll. Good karma!
7) Get organized.
Going digital is the easiest way: try Quickbooks, Lili, or an expense scanning app.
Buy a beautiful envelope or box to hold your paperwork and inspire you.
Other areas to get organized: W2, 1099, Schedule K-1, and any other documents related to income you receive from work or investments
1) The earliest use of candles is attributed to Ancient Egypt!
2) According to legend, coffee was discovered by a 9th-century goat-herder....
Baaaaahhhhh Barista!! 🐐
3) The most popular girl scout cookie is Thin Mints.
4) Boiled eggs are a great car snack!
Share your experiences of being a Fiscal Firecracker with your friends and family. You’ll be the one they start to emulate!