All posts by Tucker Spillane

www.beatingbreakeven.com

Don’t Skip On Your Taxes, Keep Every Penny

Approximately one month ago, I had a big decision to make. Do I pay a professional or do my own taxes. After about 3 seconds I knew the answer was clear. It’s like I had forgotten that I just graduated from business school with a major in finance. When people hear the word taxes many tend to cringe because of thoughts of endless paperwork and boring meticulous detail. Thankfully this isn’t 10 years ago and technology has advanced tremendously. We have TurboTax at our fingertips, and for all of you who don’t know, even a child can use this product. It makes doing your taxes as easy as those computer games they make for 5-year olds with the colorful pages and big text.

Here are a couple of reasons to do your own taxes.

  1. The software is easy to use, TurboTax does a great job making their product as unintimidating as possible.
  2. You are more aware of your own money, how much you are making and how much you are saving.
  3. Understand more about politics and where your money is going, if you don’t like how much you’re paying; make sure you vote in the next election.
  4. Saving money. Why pay your local accountant $150-350 when you can use turbo tax for free; if you qualify for the free version. If you make more than $55k, the other version will run you about $90.
  5. 1-step closer to becoming financially independent and more of an adult.
  6. The more you know about taxes the more you can benefit from deduction such as student loan Interest, job hunting costs, and moving expenses.

As a young millennial, most of us will be filing single with no dependents. This means that for most of us our taxes will be simple and less complicated than our parents. We can see our deductions and get every penny that is ours in our tax return. The average tax return is just shy of $3,000, which is a pretty big incentive to just get them done.

It may be tempting to just spend this money on frivolous toys such as a new laptop, expensive sunglasses, shoes or bottle service, but I would recommend investing in your student loans, credit card debt or investing for the future. With interest rates and loans as high as they are it’s almost as if you’d be paying yourself more.