Are you tired of living from paycheck to paycheck, and struggling to make ends meet? If one of your goals for this year is to improve your financial situation, then the suggestions and ideas presented in this article will, doubtless, be of help to you in your quest for financial improvement.
File your taxes as soon as possible to abide by the IRS’s regulations. If you are getting a refund, file early to receive your money quickly. If you owe the IRS money, file as close to April 15 (the due date) as you possibly can.
When it comes to filing income taxes, consider itemizing your deductions. To itemize it is more paperwork, upkeep and organization to keep, and fill out the paperwork needed for itemizing. Doing the paperwork needed for itemizing is all worth it if your standard deduction is lower than your itemized deduction.
Do not borrow from your 401K. Consider this the same as robbing yourself, because you are taking valuable money from your retirement account. While you are using the funds for something else, they cannot be in the market gaining interest. In addition, you are likely to pay high fees and taxes.
If you are uncomfortable with preparing your own taxes or aren’t sure where to start, then you may want to have a registered tax return prepare to complete your tax return. A registered tax return preparer in St. Louis can ensure that your tax return meets all of the IRS’s requirements and help you in case you get audited.
Rather than waiting until the last minute to hunt down and compile all of your financial documents for your income taxes, take the initiative to keep on ongoing filing system. Collect important documents, like receipts and papers related to insurance and health care, and put them all in one place where you’ll be able to find them when you need them.
Use an online digital calendar to track your personal finances. You can make note of when you need to pay bills, do taxes, check your credit score, and many other important financial matters. The calendar can be set to send you email alerts, in order to remind you of when you need to take action.
Be sure to include tax planning in your household budget. Typically, the more money you make, the more taxes that you are required to pay. It is usually best to consult an accountant to see what tax breaks you can take advantage of to minimize the impact on your budget.
A good personal finance tip is to make sure you keep all your receipts. You need to hold on to your receipts so that you can balance your checkbook. Receipts are also very important when it’s time to do your taxes because the IRS will always ask for proof.
Get a Roth IRA for your retirement because this type of account, allows you to put money aside for your retirement and not pay any taxes on it. Most people qualify for these accounts, and it is very easy to convert your current IRA into a Roth account. Ask your financial institution about these accounts.
You owe it to yourself to take control of your financial future. A solid understanding of where your personal finances are at right now, as well as, the steps necessary to free yourself from debt, is essential to improving your financial situation. Implement the suggestions presented here and you will be well on your way.
About the Author
At Sederburg & Associates, we can fill all needs for Registered Tax Return Preparers. We are proud to serve St. Louis, St. Charles, St. Peters, O’Fallon, Wentzville, Lake St. Louis, Chesterfield, Hazelwood, Florissant, and Ballwin, MO.