Wednesday, February 19, 2014

Money Tips #3: Taxes

Over the years, PF Stock has collected numerous money and tax saving tips from readers. In this series of posts, I have compiled some of the best money tips that I've received, each categorized by topic. In addition, I am including other money tips from the internet and from my own experience. I hope that this will come in handy my readers. Today's topic:

Tips for Taxes
  • My advice is to not lie about your income. Be honest and pay your taxes.
  • I use the internet as a tool to make sure I'm claiming every deduction and credit that I can qualify for.
  • My father was an accountant and used to say the best thing was to break even every tax year and not give the government an interest-free loan of your money (by getting a refund). I know that I'd never be able to save the money otherwise so I always made sure to have plenty of tax deducted in order to get a nice refund check. Now I make that money work for me; I put some aside every year and put it into a CD.
  • I make sure that I organize all year. I have folders I make in January for that year's taxes so that come tax time, I don't have to hunt for my receipts and paperwork.

  • Spend some time learning about every single deduction you are eligible for and then take them. Think; give away lots of stuff to charity; contribute as much as possible to retirement savings plans at work.
  • File your taxes for free online. Many websites let you e-file and offer free online filing if you meet their criteria.
  • Bloggers should keep track of all expenses throughout the year whether it is for mailing books for giveaways or hosting fees.
  • Contact your local libraries, chamber of commerce, or city officials, to find out which agencies offer free tax filing for low-income families.
  • Buy a copy of J.K. Lasser's Your Income Tax or the Ernst & Young Tax Guide
    to help with understanding tax laws and with preparing your taxes. Better yet, check out a copy of either one from your local library for free.
  • I'm just anxious to get this done. Get your taxes done early so you don't get stressed about it come April 15.
  • I came to realize the tax I paid on my car last year was tax deductible. Check for all the credits!
  • I have added extra to my payroll deductions in order to make sure that I don't owe any additional taxes.
  • If you have a complicated return work on it a little at a time so you will not be overwhelmed.
  • If you find you owe every year and adjusting your with holdings just isn't working out make sure to take the number you owe each year, divide it by the amount of paychecks you get per year, and stick it in a high yield online savings account. I say add at least $5-$10 more per paycheck so you have a cushion. In the worst case, you will have extra savings!

Also See:
PF Stock Money Tips #1: Use Coupons
PF Stock Money Tips #2: Credit Cards

Thanks again to all of my readers who contributed most of these tips. If you have more money saving tips, please share them in the comments below. Your tip may be featured in a future compilation.

PF Stock

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