UNITED STATES—It is that time of year people, no I’m not talking about New Year resolutions, I am talking about tax season. Yes, America tax season is soon approaching us. You may have received your W-2 from your employer in the mail, if not you should be receiving it soon, as well as other countless documents that you need to complete your taxes.
Yes, taxes it sounds like a big word, it is not, but they can be damn complicated if you don’t know your stuff. You need to have all your documents, paperwork, receipts and all those vital details that are required to properly ensure there are no hiccups when you file those taxes. I think taxes for the year 2020 will be complicated for most Americans because guess what: we had a pandemic. People received loads of income from unemployment unlike anything ever seen during our lifetime. People lost their jobs, due dates for taxes were delayed and the list goes on and on.
Doing taxes are not complicated, but at the same time they are NOT easy. The biggest problem is so many people try to cut corners. If you owe the government, you owe the government people. If you are expecting a refund, you want to ensure you receive the maximum amount, but you have to be careful not to cut corners in that hope of getting that refund. I always tell people if I owe the government, so be it. I rather pay those taxes than have to worry about looking over my shoulder for the IRS to come after me. Some people think otherwise. I’m a firm believer that is a regular person can pay their taxes and they don’t make loads of money, why is it such a problem for celebrities or wealthy to pay their taxes? You earn income you have to pay taxes people, it is that simple.
However, don’t feel like the burden of having to handle your taxes yourself. There are support groups and organizations that help those of lower incomes to handle their taxes without any hiccups along the way. The big problem for so many is if they have to pay the government. Well, if you put money up throughout the year specifically for your taxes you won’t run into that stressor.
If you didn’t it might not be a bad idea to start putting money away NOW so that you can be prepared to pay those taxes when they are due. Normally taxes are due on April 15 that was delayed in 2020 to July because of the pandemic. Will there be another delay this year? I don’t know, but if I had to go with my gut, I would argue it is indeed likely if I’m being honest people.
Now if a refund is headed your way, you might start to think what should I do with it? Should I save it? Should I spend it on something I really want? Should I pay off debt? Pay off bills? The list goes on and on and there is no easy answer. It depends on the person, but I would argue 2020 has taught us we do need to save more. We need to save more money if possible to have as a cushion for a rainy day whenever it happens to us.
Start getting those documents in hand and prepping so that when the time comes to file you’re not stressed to your limit. Just a reminder the IRS will not start accepting tax returns for 2020 until February 12, 2021. Yeah, so many people might have hoped to get a head start, but the IRS is taking precautions to ensure everything is in tip-top shape so there are no hiccups or delays when processing returns this year.
Written By Jason Jones