Happy Tax Day, NOT!

For those who are not from the US or familiar with the US “holidays”: today, April 15th, 2013, is Tax Day.

What is Tax Day? Tax Day is a day of dread for procrastinators who waited until that last minute to file their taxes.

What are taxes? Taxes perform a dual role of systematically  draining your pockets of cash (if you did not claim projected earnings properly) and killing your soul with long, drawn out personal and financial questionnaires. 

How is it celebrated? It isn’t. It’s dreaded. 

What is important to know? There is an ongoing debate on taxation. Some say it is better to get over-taxed during the year because you know that you will not owe any money to the Government and you may get a fat refund check. Others say it is better to be under-taxed and pay the Government during tax season. The theory behind this is that you get all the money you earned during the year and you can invest it and earn interest. So instead of letting the government hold you money without providing interest; you can take that same money and double it, then pay taxes.

This idea makes sense in theory, but I don’t have the willpower to invest that extra money. I would spend it. Not necessarily in a frivolous manner, but I would spend it none-the-less. Then I would still owe taxes. Womp, womp, womp!

 In light of Tax Day, here some deductions:

Your buddy owes you money, still –  Topic 453 – Bad Debt Deduction

Your ex-spouse took you to the cleaners – Topic 452 – Alimony Paid

Paying for school –  Topic 457 – Tuition and Fees DeductionTopic 456 – Student Loan Interest Deduction

Own home? Use it for business? Double deduction! Topic 504 – Home Mortgage PointsTopic 509 – Business Use of Home

I am not a tax preparer and will not be held responsible for tax outcomes. I’m just sayin’…

❤ A ❤

http://www.irs.gov/taxtopics/tc504.html

 

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