As tax season winds down and the dust settles on another year of financial assessments and paperwork, it may be tempting to close the chapter and move on to the next item on your list. However, while you’re still in tax mode, consider adding one more task to your financial to-do list: estate planning.
Tax season brings about a mix of emotions. On the one hand, you’re hoping for a decent tax refund. On the other hand, gathering tax documents, filing your return, and trying to steer clear of scams can be stressful. But what happens if you discover that you’re a victim of tax fraud before you’ve even filed your return?
As tax season rolls in, many people are looking forward to receiving a refund check. You might already have an idea of how you plan to spend it. But, while it can be fun to treat yourself, you also don’t want to lose sight of the many ways these funds can benefit you.
Receiving a tax refund is exciting but, it’s important to remember that this isn’t just free cash. Your tax refund is basically money you lent to Uncle Same, which is now being returned to you. How can you spend this money so that it helps improve your financial position? The answer to that question depends on your age.
More and more parents are stepping in to assist their children with future college expenses. After hearing countless stories about young graduates shackled by student loans, parents today are trying to help their children avoid the same fate. However, as the cost of higher education continues to rise annually, many wonder what’s the best way to save. One of the most popular options is a 529 account.
Tax season is here, and it tends to put most people on edge. Many are anxious to file their returns because they rely on the money from their tax refund. Others find it stressful to locate all their tax documents and file on time. Add in people’s fear of the IRS and making mistakes on their returns, and it creates the perfect environment for scammers.
It’s no secret that having a great credit score is beneficial today. It makes being approved for loans easier and ensures you pay less interest on those financial obligations. But its benefits stretch beyond loans. For instance, some employers will check your credit score before hiring you.
Filing your taxes can be a bit of a headache each year. While many people may have good intentions of filing as soon as they get their W-2s, the reality is people often procrastinate. Then, before they know it, the deadline sneaks up and forces them to reorganize their schedule to make time to file, causing a great deal of unnecessary stress.
Each year the IRS releases a list of tax scams that are currently affecting many individuals. The number of different scams seems to steadily increase each year, with fraudsters becoming more proficient in their targeting methods. This year, there is more for taxpayers to be mindful of with COVID-19 and economic impact payments setting the stage for tax scams.
While you can sit and wait for your tax refund check to hit your mailbox, it can be a long, painful, and frustrating wait when you really need that money. The good news is that the IRS will directly deposit your tax refund (some or all of it) electronically into your savings or checking account.
