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A New Take on Taxes

    With tax season already upon us, there are many emotions flying around. Stressed, trying to get all of your paperwork together to file in time. Anxious, to see how much you will get back or if you have to pay more. And excited, to receive your refund check and have a little extra money in your account.

 

    Taxes seem to be the conversation topic most discussed among my peers lately. I have talked to friends, coworkers, business owners, accountants, and tax professionals, which all have very different opinions on the subject. While all had valid points, a few individuals brought up ideas that have completely changed the way I look at taxes. Below I have compiled a list to share.

 

 

“Taxes are one of the few certainties we have control over” – Taxes are one of the few certainties in this world. They are going to happen no matter what. However, they are one of the few inevitabilities we have control over. Each year we can get more knowledgeable of the system and take advantage of its deductions so we are taxed on less, keeping more money in our pockets.

 

“I prefer to owe at the end of the year instead of get a refund” – This may sound counter intuitive but after thinking about it, the logic is sound. What does a tax refund mean? It means you paid the government too much and they are giving you the excess back. Instead, if you had all of that money in your pocket for the whole year, you can invest it to work for you. That way, you have a full year of growth on that money before you pay your share to the government. Just don’t forget to pay Uncle Sam or pay too little, which may result in an under payment fee.

 

“Taxes mean I am making money” – Paying taxes usually gets a negative connotation but there is truth to this statement. If you pay zero dollars in tax, you are either really good with your deductions or haven’t worked or made any money all year.

 

 

    There you have it. Just a few quotes that can change your perception of paying taxes. If you end up having to owe at the end of the year or are receiving a big refund check, paying taxes is inevitable. It just means that you are making money. So try to have a positive outlook this season.

 

 

8 Responses to “A New Take on Taxes”

  • Nancy:

    Thanks for the great info. One thought about owing the IRS rather than getting it back. I agree, you want the money to use throughout the year to spend, save or invest. However, you still have to be careful that you don’t owe over $1000 or you get an under-payment fee. So be sure your employer is taking the right amount of taxes out and not too little. That money you spend (10%) for underpayment fee could be used to invest!

    • Dividend Daze:

      I totally agree. That is the part of you have to at least have a base understanding of taxes in order to know what you can and can’t do. Personally, I don’t like to owe at the end of the year, so ideally I will try to keep my refund as close to zero as I can get. That way I am still being efficient with my money. Thanks for your comment!

  • Great post, I feel the same way. Taxable events are usually a good thing. It’s a result of making money.

    • Dividend Daze:

      Thanks IH. I agree. And making money just means we are moving in the right direction toward our goals. I Appreciate the comment.

  • As i work through my taxes this year i sort through any and all deduction options…anything to reduce taxes on passive income. Cheers. -PS

    • Dividend Daze:

      I agree. Passive income is great, but you have to remember it’s still considered income if it is not in a tax sheltered account. So it’s just being smart about your taxes and making use of all the possible deductions and credits. Thanks for your comment.

  • Thanks for your fantastic article, Anyone can easily understand about taxes reading this article. I came to know lots of new things. It’s totally worth able to share with my friends. I think some of my friends want this stuff.

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