The April 17th deadline is fast approaching and your taxes will be due. Most people dread this deadline but I have found it very easy to overcome. Just create 1 folder and label it 2006 Taxes and as your 1099’s come in the mail just put them in this folder until you’re ready to go to your accountant or do your taxes yourself online. If you itemize your taxes, create an excel spreadsheet of all your expenses you can write off, add up the totals, print it out and add that sheet to the folder. As long as the information you have is organized, it will be easy to get your taxes done.
If You Get a Refund, What Will You Do With It?
There is an interesting USA Today/Gallop Poll released today about what people will do with their refund check. 72% said they will save the money or pay a big bill instead of spending it on a flat panel tv, a vacation, or other gadgets. Experts seem to concur that although people have the intention of saving the money, 72% is much higher a number than those that actually do save their refund. The average refund check in the US is $2,771 and adds up to $230 Billion that the IRS pays out. This $230 Billion accounts for much of the Spring jump in retail spending, which tells us right there that many people do not end up saving their refund checks. Retailers like Lowe’s capitalize on this by allowing people to cash their checks in the Lowe’s store so they can spend it right there. They’ve also launched a site loweshomeinvestment.com as a marketing tool to have people spend their refunds.
Is It Better To Get A Refund?
Although we all love getting a refund, every financial planner will tell you that you absolutely should NOT get a refund if you can control it. Getting a refund means you have given the IRS an interest-free loan for an entire year. Surely you could have held this money in YOUR bank account and accrued interest. One way to shrink your refund check and keep more of your hard earned money is to increase the number of exemptions you claim. If you calculate properly, you should really owe the IRS a moderate amount in taxes. The USA Today/Gallup Poll also asked tax payers what they’d prefer: 50% said they hope to break even; and 45% said they hope to get a BIGGER refund than last year.
Where Should I Do My Taxes?
If you’ve waited this long, your best bet is to probably do them online (assuming your taxes are straight forward). If they’re complicated and you’ve never done them online before, then go see an accountant or CPA.
If you take the online route, there are several good options:
- EasyTaxReturns dot com – Save 30% by using this code: 8JS5LSYDUEG7J9W and get a FREE e-File.
- TaxBrain Online Tax Service – Get your money in 24 hours. Free To Try.
Have you ever thought to donate your car for charity? Give back to the community with car donation services. We can also donate your boat or RV as well. If you would like to learn more about donating a car, read this. Here you can find tax information on car donation if you have questions.