A Dime Saved Budgeting

Some Basics About Filing Taxes

TaxesSome Basics About Filing Taxes

Tax Filing 101

Disclaimer: The following post contains affiliate links, which means I may get money when you click or purchase something from a link in this post.

If you make money- you have to file taxes. Click To TweetThe good thing is that filing taxes is actually pretty easy for the majority of people.

There are 2 types of taxes that you have to file: Federal and State.

According to the IRS:

In most cases, you will need to file a return if any of the following are true:

  • Your gross income was over $10,000 as a single filer (or over $20,000 as a married couple filing jointly)
  • You earned over $400 from self-employment
  • You sold your home during the tax year
  • You owe taxes because of your retirement account, either from distributions or excess contributions
  • You owe Social Security and Medicare taxes on tips that were not reported to your employer, or on wages that your employer did not withhold these taxes from

After you file taxes, you may get a bill from the IRS saying that you need to pay taxes or you may get a Refund (this is when the IRS gives you money back)

The best and easiest way to file taxes is through a cheap or free tax software service. There really is no need to pay someone to do your taxes unless you have a really complicated situation.

According to a Reddit user, “If your adjusted gross income (AGI) is $66,000 or less, https://www.irs.gov/freefile has many options which may allow you to e-file your federal and state income taxes for free using popular brand-name software like Turbo Tax, Tax Slayer, etc., even if you need the more “complicated” schedules for things like itemized deductions, self-employment income, or capital gains and losses. Note that the free products offered via this service may differ from the “free” (with pushy up selling) products you’d find if you went directly to the vendors’ web sites. Always follow the links from the IRS if you want the truly free versions.”

A few things to keep in mind:

  1. Your employer, your banks, your school- they will all send you various tax forms. As soon as you get them- keep them in a folder or in a specific place on your computer. Once you have all your forms you can begin the process. Software like Turbo Tax allows you to save your work so as soon as you get your W-2 or 1099 from your employer you can get to work.
  2. Discuss with your parents your “dependent” status. Only one person can claim you as a dependent- either your parents or you- but not both. If you are still living at home or you’re parents are supporting you , they may still want to claim you as dependent. If this is not the case, let them know that they can no longer claim you as a dependent because you will be claiming yourself. This will ensure there are no issues if you are claimed as a dependent twice.
  3. File soon and file early. As soon as you can file you should do so. First of all, get it over with. Second, since many people wait until the last minute- the IRS usually takes while to process your return if you file near April 15th. However, if you file earlier (you can file as early as January 28th) they are more likely to process your return and give you a refund quickly.
  1. You MUST file by April 15th. Don’t wait until then. Do it earlier. But that is the latest you can file. Don’t miss the deadline please!
  1. If you are hit with a huge tax bill, then hire a professional to speak to. It is possible they can help you file an amended return if you did something wrong, or help you work out a payment plan with the IRS. Whatever you do, don’t not pay your bill! Even if you can’t afford it- work out some sort of plan. If you just run out on your bill you can be in a lifetime of trouble!

TurboTax

I personally have been using Turbo Tax to file my taxes for the past 8 years and I have been very happy. TurboTax is a software that you can purchase in-store or online that walks you through filing your taxes and then e-files for you, if you want. It’s easy, straightforward and it saves all your work. I also love that they save all your information from previous years so a lot of the information is already there the following years. It’s a great option that you can do from home- it’s quick and easy! You can request that your refund (if you are entitled to one) be directly deposited to your bank account which speeds up the processing time as well. I have always had very quick turn around times with my refund when doing through Turbo Tax, but I usually file my taxes in the first week of February. There are different forms of the software starting from free for basic returns and getting more expensive as you get more complicated. The website can help you figure out the best program to purchase.

DO NOT get your refund in Amazon gift cards (this is sometimes an option). It’s just begging for you to spend your refund instead of using to pay down debt, bulk up savings or use it for more crucial purchases. It may seem like a good deal (sometimes there is a financial incentive) but getting gift cards instead of cash is RARELY a good idea. Be smart with your refund and let the money help you become a little more financially secure.

 

 

A Dime Saved Savings

3 Containers and Brown Fruit

ContainersFrugality and zero-waste often go in hand-in-hand. Unfortunately, my taste buds and my kids pickiness often work hard to overcome my desire to save food and eliminate extra waste. I pack lunches for my kids and every other day (consistency is not their strong point) I unpack those same lunches from their bags. The apples are brown and the carrots are hard. A whole week can go by with brown apples being unpacked from lunch boxes, when on the 8th day I don’t pack them apples the ensuing tantrums are vicious. So apples go in their lunch every day and very often come home brown.

The frugal side of me cringes if they go in the trash yet the picky side me refuses to eat them.

I have the same issue with soft vegetables, slightly browning bananas, mushy fruit and browning greens.

So I keep 3 Containers that live in my freezer:

  1. Stock
  2. Smoothies
  3. Apples.

Fruit and vegetables that are “gross” to me and my family (i.e. mushy, hard, brown) yet not moldy go into one of the 3 containers.

I have a container where I put my vegetable stock- leftover carrots, browning greens, etc go into this box. I also put carrot peels, the strings from my celery and other scraps. These sit in my freezer until I need a new chicken or vegetable stock. Occasionally I have to add some vegetables but more often than not, some water and these scraps make a delicious stock. I will buy some chicken necks or bones and make a flavorful chicken stock as well. These get frozen into individual containers and are the base of many soups, stews, sauces and other dishes. Low-sodium and basically free!

I love smoothies and they are a great snack. Frozen fruit can be really pricey though! Browning fruit go into a container just for that purpose. A lot of bananas end up there but sometimes berries, dates, kiwi, and pears go as well. When it’s time for a smoothie, I hack some pieces off, add a liquid and a green (basil or parsley) and a delicious smoothie is born. All made from items that may have ended up in the trash!

I don’t like apples in my smoothies but my kids love apples (sometimes). Browning apples get placed into their own container where I save them until I have enough for a cobbler, pie, apple sauce or apple cider. Fruits that would have been thrown in the trash are saved until they are useful once more.

This system also assuages my guilt for not eating imperfect fruit (I am very picky to the taste and texture of my fruit and vegetables). It also helps me curb my inclination to buy less fruit and vegetables to have in the house. The frugal side of me has a hard time spending money on a variety of fruits and vegetables if I think it may not got eaten. But its really much better for myself and my children to have these options readily available for them to eat. By reducing the amount of food that goes to waste, I can feel comfortable by fresh fruits and vegetables because I know they will get used-even if its not in the original way intended.

Do you struggle with eating healthy on a budget? It doesn’t have to be difficult!

A Dime Saved Musings

How To Pick A Resolution That Will Actually Stick

It’s that time of year! Resolution time. We usually like to start with some lofty goals and high ideals. It’s the month of extremism and abstinence.

I won’t spend money on anything for the whole month.

I will stop drinking forever.

I will not make any impulse purchases ever.

These are all dreams that are not actually realistic. We are humans. Humans have wants and desires that are hard to overcome and to do that we have to be realistic. Setting to large of a goal can actually lead to failure. It it easier to accept defeat when it was long-shot anyways. “Reach for the stars” and “aim big” are great tenants to live by but not very practical when actually choosing a goal and resolution that you want to reach.

Every big achievement starts with small baby steps.

Specific. Actionable. Measurable. Realistic. Lasting

Lasting- Choose something that is maintainable. Going on a spending fast is not going to get you anywhere concrete. It may help you for this month, but what about the next?

How do you choose a resolution that you will actually keep? Make sure it has some of the following characteristics:

Specific- big, sweeping statements sound nice and motivational but are not actually practical. I will not drink alone before 8 o’clock at night is a specific goal that solves a specific problem.

Actionable- Choosing to do something is easier than choosing NOT to do something. I will make myself coffee at home is easier to do, than I will NOT buy coffee at Starbucks.

Measurable- You need to be able to measure what you do do that you can celebrate when you do it. You need to be able to build on the positive momentum of your achievement. Create a goal that you can measure. Something subjective is not ideal because of the human tendency to create excuses. So “I will not make impulse purchases” can’t really be measured because who decides what is an “impulse”? I will not spend more than $50 is measurable, you either did or you didn’t. “I will make coffee at home for one week” is measurable.

Realistic- If the goal is unrealistic or too difficult than you will quit before you start. We don’t like failure so if the goal is never going to be reached we probably won’t try at all. You are probably not going to save 50% of your paycheck right off the bat. You probably won’t cut all impulse spending right away (if this is an issue for you). Some things that are more realistic? 5% or 10% of your paycheck should go to savings. Put $5 a month away in a retirement account. Set a budget for impulse purchases that is what you can afford but not too small that you blow it all on the first day.

Lasting- Can you pick something that will last the whole year? Choosing a goal or resolution that will last and be a real change in your lifestyle (forever?) should really be the point. After all, wouldn’t it be great if each year you make a change that can be build on the next year? Don’t pick something flashy that will make you burn out by February. Pick something small, meaningful, realistic and measurable that you can really do for the whole year!