Are You Taxed by Your Taxes?

No one looks forward to paying taxes, unless they are 100% sure of getting a refund.  If so, the forms are filed the minute all the necessary paperwork has been received.

On the other hand, the people who anticipate owing taxes generally wait until the last possible moment to file.  Thus, they are essentially taxed twice. Why?

Although we naturally budget for bills and other household expenses, many individuals fail to budget properly for their portion of income tax.  Thus, when tax time comes around, they are taxed emotionally and financially to meet they obligation to the IRS.  After all, we have all heard the old saying that the only sure things in life are death and taxes. 

If the IRS is owed, it expects to be paid on time.  If a citizen is late in remitting taxes, the interest and penalties can be astronomical.

So, if you are one who feels taxed in more ways than one, here is a little bit of advice:

1.  Think of your taxes as an expense, much like utilities or a car payment.

2.  If you owed taxes after filing out your forms last year, change your deductions. 

3.  If you are already claiming zero deductions, have an additional amount deducted throughout the year.  (What you don’t see in your paycheck, you won’t miss.)

4.  If you have children, start a tax free educational account.  The money will not be taxed if used for your child’s post-secondary schooling in the future.

5.  You can also contribute to charities. As long as the charity is registered as a non-profit organization with the federal government, it can also help reduce your tax bill, as well as helping the less fortunate. 

How do you keep from being taxed by your taxes?

Tina

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