Nobody loves tax season, especially not frugal people who are already watching their money very carefully. However, there are some tax tips you can use and some steps you can take to make this part of your year a little bit less painful and stressful. Just don't forget to turn your taxes in by April 15th!
Use a do-it-yourself program whenever possible. Sure, the convenience of an accountant putting your finances in order may seem worth it. In the long run, though, using a computer program and plugging in all the information yourself serves a dual purpose: first, it saves you a ton of money on the accounting fees, and second, it gives you a better sense of your own finances and a good handle on where your money is going. Also, if there are any issues, you have only yourself to blame, which is both a blessing and a curse.
If you work for a company and not yourself, have them take a percentage of your paychecks for tax purposes. At the end of the fiscal year, if you've given excess due to a high percentage of your checks going towards taxes, you'll get a refund -- and unexpectedly bonus money is always a wonderful surprise! This will force you to work with a slightly tighter budget in the meantime, but you also won't owe a large chunk of cash to the IRS come tax season. If you work for yourself, take a percentage of your own wages if you can afford it.
Write off everything you can! Any sort of home business you run allows you to write off the supplies you purchase and services you use, so long as you keep the receipts and tax the income you make off the business. If your home is your office, you suddenly realize that a lot of things become tax write-offs -- from your internet service to the new computer you use for work purposes to the paper you use to print your flyers.
Special garage sale tip: garage sales don't need to be taxed. As long as your sale was a one-time thing, the government does not require you to report any income from the sale of your possessions. If, however, you are running a garage sale-like small business, you will need to report your income.
GarageSaleCow.com is a great place to go for lots of financial information and resources, so come visit us now!