SEASON FINALE! Uncle Sam is thirsty. But on this episode, we talk about why you shouldn’t be afraid of the IRS and how to take taxes on like a pro.
$$$ This Is How You Get Money $$$
When thinking about taxes, you should know that…
- The IRS already knows how much money you made, they just want you to file a tax return to match it.
- Getting a refund doesn’t mean you paid less in taxes than someone else. It just means that you’re owed that money by the government because you overpaid in the first place.
We’ll all be paying taxes for the rest of our lives, so here are three pro tips when it comes to taxes:
- Want a quick and dirty way to pay less tax this year? Contribute to your 401(k).
- Don’t be ashamed of an extension, especially if you’re a freelancer. You’ve got a lot going on and you need more time. I personally file an extension every year. I file form 4868 and I get an extra 6 months to get my shit together. It’s not an extension to pay though, so you should estimate how much you’ll owe and pay by April 15th.
- Tax preparation software that claims to be “free” isn’t always free! Do your research to make sure you aren’t paying to process your taxes when you don’t have to.
And finally, if you can’t pay your tax bill, the IRS has a little bit of wiggle room. You can go on an installment agreement and the interest rates are actually quite low!