Taxes due today! Due to a holiday, you had a couple extra days to finish up with your taxes. Taxes give us the roads we drive on, the schools we’ve attended, and the police and fire protection we rely on. Of course, even with the many benefits taxes provide, most people can’t stand paying them. Hopefully you’re not having to shell out a bunch of money to Uncle Sam today… but getting a refund is almost as bad. A refund is just your money coming back to you. You’ve basically given the government an interest free loan.
Paying the right amount of taxes is one of the best financial strategies you can follow. You should be working with a tax professional like a Certified Public Accountant (CPA) to determine what taxes are due. Looking forward, you should make a plan with a Certified Financial Planner (CFP) to reduce your taxes going forward. The main difference between a CPA and a CFP is perspective. You’re CPA will be looking at your past, while your CFP is looking at your future.
The government has crafted a complicated tax code that frustrates many. Frustration wasn’t the goal. The reason that any government creates tax law is because they want to either encourage or discourage a behavior. A tax on gas encourages people to buy more fuel efficient cars, while a tax on soft drinks discourages people from unhealthy health choices. The professionals that understand these rules and regulations may cost you a bit upfront, but the long term tax savings are worth it.
Of course, once again, taxes due today! Make sure you get everything turned in by midnight this evening. If you’re unable to do so, you will want to reach out to the IRS to see if you can get an extension granted for your return.