Why should you get smart about taxes? Here are four great reasons

July 22, 2014 by Karen Reed, EA
boy with glasses thinking

You have a tax program or a tax professional to figure your tax stuff out for you, so you don’t need to understand taxes, right? Check out and go on a mini-vaca? Well, not so fast… A tax program is only as good as the information you put into it (think: garbage in, garbage out). And, while your tax professional may be the best around, it’s a fact that nobody cares about your money more than you do.

Here’s more to consider:

1. Taxes Might Be Your Biggest Expenditure

If you’re like most Americans, you spend more money on taxes than you do on anything else, so you should understand it, shouldn’t you? According to The Tax Foundation, Americans will spend more on taxes in 2014 than they will on food, clothing and housing combined!

2. Many Major Life Decisions Have Tax Consequences

Most major personal decisions have tax consequences. Should you get married or stay single? Should you get divorced or stay married? Should you have kids or stick with the pet poodle? How much can you afford to pay for college? Should you buy a house? The list goes on and on…

3. Knowing About the Latest Tax Breaks Could Save Money

When making a major purchase for business or for your home, knowing about the tax breaks that may be available can help you plan. You may even be able to afford more (or less) than you might have thought... (You think you can’t afford those thirty thousand dollar solar panels, but, wow! What if you were going to get 10K of it back in a tax credit?)

4. Taxes Can Make You Smarter

Taxes are often complicated and difficult to understand, and studies show that those who acquire new skills and abilities can get smarter by doing so!

So where should you start? Right here, with the TaxAudit.com Blog, and feel free to send your questions to us. It’s the middle of the summer. Who’s thinking about taxes? Congratulations, you are!

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Karen Reed, EA

 

During her years as an audit representative for TaxAudit, Karen successfully defended the company’s members throughout the entire federal and state audit processes, handled cases assigned to US Tax Court, and developed procedures to make the audit process easier for taxpayers. Karen attributes a great deal of her tax acumen to the six tax seasons she spent as a return reviewer, analyzing thousands of returns. Responding in writing to questions from taxpayers, she became familiar with the common mistakes self-preparers make. Karen was previously the manager of the Tax Education and Research Department and the Director of Communications at TaxAudit. Her tax advice has been featured in U.S. News and World Report, the Los Angeles Times, the Chicago Tribune, and other publications.


 

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