March 30th, 2011
Tax Tips From Our Favorite Personal Finance Bloggers
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** It’s Credit Karma Tax Week! Every day we’ll have tax-related posts to keep you in-the-know as you file your taxes. **
“Now my advice for those who die,
Declare the pennies on your eyes.
‘Cause I’m the taxman.
Yeah, I’m the taxman.”
- The Beatles, “Taxman”
Even the Beatles lamented paying taxes in this 1967 cartoon.
The Fab Four had it right when they said, “You’re working for no one but [the taxman].” But paying taxes doesn’t have to feel like a hard day’s night. When we find ourselves in times of trouble, we get by with a little advice from our friends.
Today, we share great tax tips from our favorite personal finance bloggers to help save you from the taxman. Enjoy!
On Time Management
“Rushing through your taxes, though tempting, is not a good strategy! If you take the time to learn and plan, you’ll keep from missing things, know what to look for next year, and over time you’ll save a bundle of cash.”
Kira Botkin, Tax Expert at Money Crashers
“The government processes tax returns in week-long blocks. So Friday morning at 11am EST, they process all the returns they received over the previous week. If you can send it in before the cutoff you will just get your refund a bit quicker. “
“Don’t wait until the end of the year to get organized. Itemize receipts, sort bills, and gather important documents once a month leading up to filing time. You’ll appreciate how easy it will make tax time!”
Linsey Knerl, FinancialHighway.com
On Getting the Most Out of Your Money
“The easiest way to pocket some money is to use tax payment scheduling and your savings account to your advantage. Most people pay their taxes out of their checking account, but if you want some extra money, it’s just as easy to deposit your money into your savings account and then schedule your payment to not debit your account until the deadline, earning precious interests. It’s not much these days, but with practically no extra work at all, it’s well worth it.”
David Ning, MoneyNing.com
“Are you underutilizing the home office deduction? If you itemize your taxes, this is one area where you can get a tax break. This deduction has been a particular boon for me ever since I started running my business from home. Telecommuters should check into this as well!”
Silicon Valley Blogger, TheDigeratiLife.com
“Kill two birds with one stone! Start your spring cleaning early and deduct charitable donations. Anything you can donate to an IRS-qualified organization will count as a tax deduction, so start sorting through those clothes that you’ll never wear again.”
Megan Tice, Money Aisle blog
On Using Tax Tools
“Know when to hire a tax professional. I have no idea what I’m doing when it comes to taxes. I’ve messed mine up twice, and they get more difficult every year. I know my strengths. It’s not doing my taxes.”
Hank Coleman, OwnTheDollar.com
“Just get it done. Especially if you make under $100,000, your audit risk is relatively low—so don’t stress it. I’m a fan of TurboTax, so just crank it up, fill in your info, and don’t give it another thought.”
Allison Kade, Deputy Editor at LearnVest.com
“Use a service like Mint.com, to track your expenses. Makes it easy to view your year-end expenses and helps you remember expenses you may have forgotten about”
Check out more personal finance advice from our favorite personal finance bloggers and be prepared all year round!
Did you know? If you’ve filed and you’re waiting on a refund, you can check its status! There are several different ways you can check your refund’s status; find out how on the IRS’s website.