When I was thinking about what to write in this week's Katana, I suddenly shouted out, “Crap! Taxes are due soon!” This is the first year where I actually owe money to the government and I'm not too pleased. For all intents and purposes, I should be happy that I got a free multi-thousand loan for the year. But, it just feels off. A typical personal finance blogger will argue that it's stupid to celebrate a tax refund. But, I'm telling you to go right ahead. Tax refunds are good for most people because most people can't save for cookies!
Taxes Are Due Soon!
Even though taxes are due soon, I'm waiting until the absolute last moment to file. Why? Because I constantly find errors in the way I'm doing my returns. There's no doubt in my mind that every single tax return submitted by an individual has at least one error, or sub-optimal input. I generally go over my taxes at least three times before submitting them. It's in my nature to double and triple check everything when it comes to money.
Doing your own taxes forces you to learn a tremendous amount about your finances. It heightens your awareness, leading to better financial decisions. You learn about things such as deduction limit phases outs, rental property amortization, and alternative minimum taxes all too well.
Once you understand how much income leakage there is, you'll join the side which wishes for a fair flat tax and a smaller, more efficient government. Too many people just blindly follow what their accountant tells them to do without fully understanding where their money is going. That's irresponsible.
#1 Tax Tip
My #1 tax tip for everyone is to do your own taxes at least once. Even if you make mistakes, which you will, you'll be a better person because if it!
Readers, how many of you do your own taxes? Are you freaking out that taxes are due soon? With tax software making things relatively simple nowadays, why not try it out on your own if you don't now? Taxes are typically due April 15th each year, give or take a couple days if it falls on a weekend.
HIGHLIGHT POSTS FROM AROUND THE SPHERE
“Beware Of The Four Horsemen Of Personal Finance” by Len Penzo, who finally joins the crew. One of the wittiest PF writers around.
“How I Paid Off Over $70,000 In Debt And Quit My Job” by Eventual Millionaire highlights her journey in becoming debt free and reaching financial freedom. Love reading triumphant stories!
After “Doing Anything You Can To Survive“, I'd like to touch upon topics of discrimination and why it exists. Are we a product of our upbringing and how we were raised? Do old habits die hard? Hope you all can join in on the discussion as these topics pertain to all of us. Here are some additional posts for further reading.
- The Average Tax Refund And How To Spend It
- The Best Thing About Trump’s Tax Plan: Earning Business Income!
- The Largest Tax Refund Request Ever! Plus Tax Tips For Small Business Owners
- The Property Assessor Always Wins In A Bull Market – Filing An Appeal Is Useless
- Dealing With The Guilt-Joy Of Raising Taxes On The Rich
- Taxes Suck And Make Me Want To Shut Down My Small Business
And one last reminder: don't forget – taxes are due soon!
Sam @ Financial Samurai – “Slicing Through Money’s Mysteries”
Follow on Twitter @FinancialSamura