It’s that time of year again. I do not even think the people who are getting a refund are that happy to see it. It is tax time. You have to have all of your records and either see a professional tax preparer or get professional tax preparation software. I used to go to one of those tax places, then I started doing it on my own. Understanding more of what is involved in doing my taxes helps me keep better records and helps me to make better financial decisions. The goal is to pay as little tax as possible.
I remember the arguments this past election season about rich people not paying tax. Well, if you could use rules and laws to not have to pay a tax, why wouldn’t you? It just makes sense whether you are rich or working class to pay as little tax as possible. I like quality professional tax preparation software that asks me all the questions and shows me all of the options. I do not want to miss a deduction or tax break. If the tax law says you can write something off, then why not? However, you do need to be able to catch all of those things.
Some people who are working are even eligible for an earned-income credit. You could actually get a refund even though you did not pay in any taxes. However, if you rely on reading all the pamphlets and books for the tax code to do your taxes, you can miss out on things like that. Good professional tax preparation software asks you questions to see what you are eligible to do as far as your taxes are concerned. You may be shorting yourself on a much better refund or paying too much in taxes by simply not knowing the rules.