Done with your taxes yet?
I had all of our taxes ready super early this year (like, before April 1st) because I knew we would have to pay in and then we would have some time to save for what we owe.
Brent and I do have an accountant, but I try to understand as much as I can so I can make it easy on her and us. So I got all the necessary stuff, and I was looking over last years forms, and I noticed that we had paid SS tax and Medicare tax twice for our housing allowance. Its kind of long and complicated how this works because Brent works for a church but is not a pastor, so there are all kinds of crazy tax rules that are just for us. Oh joy.
So anyway, our accountant checked into some things for us, and we did overpay last year. She is going to amend our 2004 taxes for us, and the amount we get back will probably be enough to cover what we owe for this year. Praise God! I was so worried about trying to find the money to pay for this, and now it might work out.
So here are my tax tips:
- Pay close attention and learn as much as you can about your taxes. I know it's a pain in the rear and it is really confusing at times, but it's worth it to know what's going on. I did our taxes last year (probably why the mistake) and our accountant checked them for us, but it was so valuable to learn all the laws and codes. This year i was super-organized because of what I had learned last year.
- Aim for nothing. Nothing to pay in, nothing to give back. If you always get a refund, that's a free loan you are giving to the government, and more that could have been on your weekly paycheck. If you always pay in, that's a huge chunk of money you have to come up with in a short amount of time. Either way, you can ask your employer to adjust how much you pay from each paycheck so you can minimize your April 15th payout or refund.
- If you tithe, or give to the church, don't do the EZ form. All the money you donate can be deducted, and it has made the difference for us every year between paying in and getting a refund.
- Start working on your taxes in December. I know this is kind of late advice, but the earlier, the better when it comes to tax time. Not only will you be able to file right away, but if you need to make any extra purchases or financial adjustmnets, you will be able to take care of them before the year closes.
Happy filing! :P
Brent and I do have an accountant, but I try to understand as much as I can so I can make it easy on her and us. So I got all the necessary stuff, and I was looking over last years forms, and I noticed that we had paid SS tax and Medicare tax twice for our housing allowance. Its kind of long and complicated how this works because Brent works for a church but is not a pastor, so there are all kinds of crazy tax rules that are just for us. Oh joy.
So anyway, our accountant checked into some things for us, and we did overpay last year. She is going to amend our 2004 taxes for us, and the amount we get back will probably be enough to cover what we owe for this year. Praise God! I was so worried about trying to find the money to pay for this, and now it might work out.
So here are my tax tips:
- Pay close attention and learn as much as you can about your taxes. I know it's a pain in the rear and it is really confusing at times, but it's worth it to know what's going on. I did our taxes last year (probably why the mistake) and our accountant checked them for us, but it was so valuable to learn all the laws and codes. This year i was super-organized because of what I had learned last year.
- Aim for nothing. Nothing to pay in, nothing to give back. If you always get a refund, that's a free loan you are giving to the government, and more that could have been on your weekly paycheck. If you always pay in, that's a huge chunk of money you have to come up with in a short amount of time. Either way, you can ask your employer to adjust how much you pay from each paycheck so you can minimize your April 15th payout or refund.
- If you tithe, or give to the church, don't do the EZ form. All the money you donate can be deducted, and it has made the difference for us every year between paying in and getting a refund.
- Start working on your taxes in December. I know this is kind of late advice, but the earlier, the better when it comes to tax time. Not only will you be able to file right away, but if you need to make any extra purchases or financial adjustmnets, you will be able to take care of them before the year closes.
Happy filing! :P
Labels: Saving Money
posted by Tracy at 9:44 AM
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