Around the Corner ©: The Tax Refund Lotto

So you have filed your federal income taxes, or are preparing to do so by the deadline (April 15th), which is - around the corner.    Think about what you plan to do with your refund.  Think about how that sum of money plays into your overall Spending Plan.  It’s not free money.   It’s not a lottery you won, so don’t blow it like you might – you know the saying “easy come, easy go,” because you worked hard for your money.   Think of this pot of money as being able to:

Moving Forward...

Erratum:  Hello, just wanted to correct an error I noted in the post.  Below I referred to a 1098-T form, that is actual the Tuition Statement form.  The Student Loan Interest form is a 1098-E. 

Happy New Year to you.....   So hopefully you had a grand old time during the holidays, had fun with family and friends.  Ate all the holiday favorites and resigned yourself to taking the weight off in January... well January is here, and while you work on your weight loss or any other promise, take a few minutes to start pulling your tax input documents together to ensure that you leave no tax dollars on the table.  Here are a few that folks often either forget,


Tax Planners and Tax Organizers

So you are still trying to find that document that your accountant or your tax preparer needs to make sure that you don’t get taxed an astronomical amount on your return, but you just can’t unearth the dastardly piece of paper.  Yes, now you are blaming the piece of paper, but you know jolly good and well where the finger should be pointed – but let’s not play the blame game, let’s figure out


Retirement Withdrawals or Distributions

Often, people forget that they withdrew some money from their 401K, or other retirement account.  Making a withdrawal is called "taking a distribution."  This distribution amount is generally considered income unless you rolled it over from one retirement account to another.  If you received money, it will generally be considered income.  In many cases, the financial institution will withhold 20% of the amount you withdraw, with the intent that, that amount should cover the taxes, and if that were your only income it could possibly be enough, however,
"No matter who you are, making informed decisions about what you do with your money, will help build a more stable financial future for you and your family." Alan Greenspan