3 Tax Tips to help Black Belt Your Financial Goals
Taxes can be difficult to figure out. Here are 3 tips for those looking to Black Belt their Finances with their taxes this year. These can help you meet your financial goals.
First, there are plenty of FREE tax help places such as through your local library or, for older Americans, senior centers. These are usually income-based, so check them out to see if you qualify for them. If you don’t know where to start looking, ask a librarian for help.
Second, make sure you’re getting all the tax credits you deserve to take this year. Turns out many people aren’t aware if they’re eligible for the Earned Income Tax Credit. That and the Child Tax Credit are keeping almost 8.9 MILLION people above the poverty line for 2018 according to the U.S. Census Bureau. (1) What else might you be entitled to?
I was shocked how much business and medical mileage could save. One year it came to roughly $1200 business miles and $400 for medical miles in tax deductions that I just needed to keep a mileage log to prove their legitimacy. Amazing, yes?
Third, if you have more complicated taxes, like investment income, mortgage interest, etc, it’s good insurance to see a tax professional well versed in all the minutiae of the current year’s tax laws.
Do keep in mind that the only two professionals who can represent you during an audit are a Certified Public Accountant (CPA) and an Enrolled Agent (EA). Most of you know what a CPA is, but an EA, what’s that?
I never heard of EAs until my best friend started studying to be one. They specialize in taxes taking many classes and passing through a rigorous certification process to determine their expertise. My friend says they’re better than CPAs, because of their specialization in taxes only. Take that as you will, but I am convinced they’re extremely good too.
For my complicated return when I co-owned a business, I went to either a CPA or an EA. I much preferred have the peace of mind that I covered all my tax bases correctly and ensured I got all the deductions. I consider it penny wise and pound foolish to pass up the advice of someone much more versed than I’d ever want to become in the tax arena.
Make it a goal to Black Belt Your Finances with all the tax deductions this year. Consider getting expert help either for free from a reputable helper or from either a CPA or EA in case you’ve missed something in the past.
(1) You can read a bit more about the EITC and the Child Tax Credit in this MSN article https://www.msn.com/en-us/money/taxes/taxpayers-are-leaving-millions-of-dollars-off-their-returns-why-americans-repeatedly-overlook-this-lucrative-tax-credit/ar-BBZdjBz?ocid=spartanntp