What’s up, everybody? It’s your boy, Brandon Copeland, aka Professor Cope, and you are now tuned in to another special episode of Cope’ing With Money.
So, it is tax season, and I have been on record time and time again saying that I know we’ve put a lot of focus on investing and budgeting, and those are really, really important topics. But one of the most common misunderstood and overlooked pieces of a full financial game plan is tax strategy.
I know it’s tax season, although if you’re keeping your money on your mind, when is it not? Taxes are something that you should be considering throughout the year as you’re making decisions, as you’re making moves.
For most people, the due date for the 2021 tax year is April 18. However, you can file for an extension if necessary and push that date back to as far as Oct. 17. Whether you choose to extend or not, we’re going to go over some commonly used tax strategies to make sure that you are getting the most efficient bang for your buck and maximizing your 2021 tax return.
Although we’re talking 2021 filing specifically, these are all strategies that you can use year-round to minimize your payments and keep the filing process as smooth as possible. Just make sure you double-check specific dates and dollar amounts for your filing year. And, as always: Consult with a tax professional who understands you and your personal situation better.
Understand Your Tax Situation
Know your situation. The amount you pay is dependent on your own situation, not your friends or your neighbors, or the person that you work with.
Remember that different states have different taxes and occasionally due dates as well.
If you’re self-employed, remember to take your deductions. You may have business expenses or a home office, especially in this work-from-home environment. If you have children, you may also be able to receive a child or child-care tax credit. So make sure you keep this in mind when filing.
Most people still don’t realize that your biggest expense is not the cable bill, not the phone bill and not the internet bill. But ultimately, it’s your tax bill.
So I want to make sure we emphasize this year, not only our tax filing, also our tax planning and strategy for the future.
File Even If You Don’t Have To
Another thing I want you to consider is filing even if you don’t have to. Even if your income is below the filing threshold, you may still be eligible for a refund of withheld taxes or estimated payments.
And if your …….
Source: https://www.kiplinger.com/taxes/604407/tax-tips-for-last-minute-filers
