Breaking Bad Tax Habits
Hi Money Masters!
I truly hope you had a blessed and joyous holiday season. 2019 is upon us and we have work to do! I’m excited to bring you new ideas and resources this year on many of your top financial concerns. With tax season approaching, I thought it would be a good idea to start 2019 out fresh with a discussion on not-so-good tax habits.
Make sure not to keep any of your income hidden.
Failing to report any income, even from a side hustle, could result in big trouble with the IRS. The repercussions could be a fine or jail time…not good.
Don’t forget about estimated taxes.
Contractors do not have taxes withheld from their paychecks, so it is their responsibility to estimate and pay taxes each quarter.
Be in the know.
Make sure you know important due dates so you can file on time. Also, know WHAT information you need and have it handy. You will need to know how much income you brought in, how many dependents you can claim, and any other tax credits for which you are eligible.
Pay tax debts.
If you happen to owe taxes, you will want to pay them. If you don’t believe you cannot afford to pay, resist the temptation to ignore it. It won’t go away. The government does provide options including installment agreements and other programs you may qualify for depending on your situation.
Doing your taxes may not be everyone’s favorite hobby, but it is a necessity, especially for staying on track with financial goals! Don’t be afraid to ask your licensed tax professional for help.
Blessings to you all.