I guess it depends on what interest rate you're able to get that would help determine if you should hang on to your money and earn interest on it then pay the IRS or set up your account so you're not having the IRS hang on to your money, earn interest on it for a year, and then give you a refund.
There are obviously many factors that go into taxes while trying to determine how much should be taken out of your pay so that you don't end up paying the IRS more than is needed or getting too much $ back.
Be sure to change your W-4 withholding each year as tax rules change as this can add a little bit back into your pocket.
Also consider if any dependents have moved out, or if you refinanced your mortgage cause you insurance deduction could have changed. Pay close attention to self-employment taxes.
Taxes can be a burden, but if done right, can help position your finances in a positive way!
So, now that every single American must have health insurance or face a penalty, how do you budget for that cost, and how would that affect your other debts? Do you know how much extra in interest you will now be paying due to this new expense? What if you don't obtain any health insurance? What's that going to cost you?
Well, for one, in 2016, you're subject to either of the following penalties, depending on which one is higher.
It's important to always consider your "true cost" by taking each or your expenses and adding the amount you could have saved in interest by applying the money for that expense to the Program. Doing so will help you realize how much you will be paying in interest by taking on the penalty. Although I don't advocate taking a penalty just to avoid paying expensive health insurance because you may be healthy, the program will help you realize the true cost to taking on either the monthly health insurance expense, or the cost of the penalty.
One of my all-time favorite insights into money management. Most people forget that to avoid debt, all you have to do is not buy stuff you can't afford. Now, there are those things that we may have to take on some debt (i.e. mortgage, vehicle), but other than large expenses, debt is unnecessary.
Luckily, there are solutions that help those that already have debt get out in the most mathematically-way possible! Check out the procrastination cost to see an example of how you can find out what it'll personally cost you to procrastinate paying off the debts you have acquired.
Well, April 15th is now gone, and if you are lucky enough to have some of your hard-earned money back in your hands, how do you plan on using it? Without a good financial analysis, you may not even know how to answer the question.
Turbo Tax has a pretty cool info-graphic to see how you fit into the different scenarios. Eliminating debt is a great way to spend that refund check, and knowing which account to put it towards is the evidence of a good money manager, but if you don't know which debt to put that refund check towards, obtaining a financial statement analysis today is a great way to find out. Feel free to ask me what I did with my $6,800 tax refund.
Info-graphic curteous of TurboTax http://blog.turbotax.intuit.com/
So, for the last 4 months, we have been trying to sell our Toyota Highlander. When we purchased our van, we were offered a small amount as a trade-in, but we didn't want to settle for less money so we decided to try and sell it on our own. The process has been long and grueling, but worth it. Of course, we spent about $700 during those 4 months in vehicle payments on the car before selling it.
We owed $6,800 on the vehicle at time it was sold, but we were trying to sell it for $10,500 and didn't get any real serious inquiries. After we listed it for under $9,000, we started getting serious inquiries. I think that the value of the vehicle dropped at the beginning of 2015 because it hit 10 years old in 2015 and was only 9 years old in 2014.
We ended up getting $9,700, paying off $6,800 that was due on a loan, and then keeping $2,900 in equity, which we are using to pay off some of our other debts.
What's really awesome about the the Money Max Account is that it'll now tell me exactly how much and to which account I should put that equity towards. Before we sold the vehicle, the Money Max Account has us being debt free in 1.8 years. After eliminating the car payment, and insurance payment, and having a little bit of equity $$ to spend, the program is now showing we only have 1.3 years left to pay off our debts with only $30k in principle payments remaining. We are getting more and more excited to be debt free and it will become a reality soon! Check out the screenshots from my actual program so you can see how this program is working for me!
Shane D. Sorensen, MBA
Hi. Thanks for checking out my blog! I decided to blog my experience with the Money Max Account while offering other helpful, financial advice. I hope what I share proves useful.