There has always been the long-standing argument that money cannot buy love! And many preach this like gospel so vehemently you would think this is an undeniable fact. But if you let the numbers tell it Valentine’s Day may prove that money can buy love. That’s because Valentine’s Day is one of the priciest holidays in the U.S., with Americans spending on average $267 to mark the occasion, according to Bankrate’s 2019 Valentine’s Day survey. Consumers are set to spend $20.7 billion this year for Valentine’s Day, says the National Retail Federation, beating the 2016 record of $19.7 billion. And although men spend significantly more for the day ($339, versus women who spend on average $64) men also expect their partners to spend more on them — at least $211 to be exact, while women expect their partners to spend around $154.
So now that we have settled that, the next big love of our life that is on everyone’s mind is… those dreaded taxes that we have to file every year. For some reason, taxes have gotten a bad rap, but truth be told if you knew the secrets, you would fall in love with doing your taxes more than Kanye loves Kanye (they’re not really secrets, but it sounded cool to say). Face it, you work hard and meet your obligations all year round, so why shouldn’t you be rewarded for doing what you’re supposed to?
You absolutely should be rewarded! And to help you reap those rewards, check out the following five tips for filing taxes that will help you start to fall in love with the process.
Lovely Tips for Filing Taxes
1) You can possibly get tax credits and deductions for higher education.
For many Americans, especially millennials, student loans are one of the most concerning things keeping them up late at night. But, most don’t realize that they may be eligible for many deductions that will give them a bigger return come income tax time.
For example, the student loan interest deduction allows you to deduct the amount you paid in student loan interest, up to $2,500 per year. Some other deductions include: the American Opportunity Credit and the Lifetime Learning Credit. Visit IRS.gov for a complete list of deductions.
2) Staying healthy can come with financial kickbacks.
With the rising cost of health insurance these days, it may be tempting to forgo health insurance and take your chances, however, not only would that be a big health mistake, but it would also be a big financial mistake due to the penalty charged to those who are uninsured.
One thing that may make you fall in love with taxes is the fact that you can contribute to a Health Savings Account (HSA). In order to pay for those high deductible health insurance plans pre-tax, contributing to an HSA can save you thousands of dollars when you file your taxes. For the 2015 tax filing year, the minimum annual deductible is $1,300 for individual coverage and $2,600 for families and the maximum annual deductible and other out-of-pocket expenses is $6,550 and $13,100 for families.
3) Doing good can be financially rewarding.
There are two universal laws that I live by: 1. “the more you give the more you get” and 2. “to whom much is given, much is required.”
Not only is giving back a noble thing, but it can also help give you substantial tax savings. If you made donations to a charity, you might be able to use them as deductions on your taxes. To qualify, your donations have to be made to a nonprofit organization that can prove they have 501(c)(3) tax status. Legitimate charities usually have their status clearly stated on their websites, or you can verify it directly from the IRS by visiting http://www.IRS.gov/charities, then click on the tab that says, Contributors.
The second criterion is that you must have a receipt from your donations. Not all of your donations count, and there are limits on what can be deducted, so make sure you check with a tax accountant to verify your eligibility. Some common deductions include real estate, furniture, clothing, cars, electronic equipment, office supplies, mileage, cash donations, and tithes paid.
4) Your side hustle can pay your dividends.
We now live in a time where starting a business is not only easier than ever, but it can be done with low overhead, which results in showing a profit earlier on. With many people now leaping faith to become their own bosses, it would behoove you to take advantage of the many associated benefits.
Starting a home-based business can cause two things related to your taxes to happen. First, with your initial investment into the business, it can increase your tax refund. And secondly, you can deduct things like your home office, telephone, Internet service, and office supplies. The deductions aren’t anything to sneeze at either. On average, a home-business can bring in around $3,000 to $9,000 in tax savings. The great thing is that it doesn’t matter whether you run your business full-time or part-time—you can still benefit from running a home business.
Starting to fall in love with the idea of filing your taxes as much as you already love mobile banking? Just remember that in all things, love is a process!
Disclaimer: All material is for informational purposes only, and is not intended to provide tax, legal or financial advice. Paradigm Money does not provide tax, legal or financial advice, so you should consult your own tax, legal and financial advisors before making a decision or taking any action.
T-Mobile’s Dream of Telecommunications Domination Gets the OK + How to Create Mental Toughness While Pursuing Your Dreams
T-Mobile’s $26 billion takeover of Sprint finally got approved by a federal judge, a move that will leave most wireless consumers with three major operators to choose from, including Verizon and AT&T. More than a dozen attorneys general had sued to block the merger that had already been approved by the Justice Department and Federal Communications Commission. The administration has required T-Mobile and Sprint to sell some units to pay-TV operator Dish Network as part of the deal.
Dream chasing isn’t for the faint at heart. It can take years before one sees the financial payoff of what was once an idea. T-Mobile is probably patient on the outside, but internal it is jumping for joy. It took them a few years to get to this point, but I’m sure they will be relieved at the fruits of their patients.
When building a business, your goal has to be more than money, or you will ultimately fail. Your drive has to be based on principle, change, and something greater than yourself. Here is how to stay mentally tough while pursuing your dreams.
Personal Development. The road to success is paved with character and growth. Personal development is one of the key drivers that sustain you on the path of your dreams. Trustworthiness, keeping your word, and dependability are imperative to any industry. It doesn’t matter if you’re a musician or painter, lawyer or doctor, these traits and non-negotiable and forever transferable to success.
Take Breaks. To get there, you must rest one mile at a time. The grind is overrated. Reflecting on how far you’ve come energizes you for the road ahead. Burnout is a danger to your accomplishments and leads to a failure by default.
Stay Hungry. Stay Foolish. Steve Jobs popularized this quote from an ad in The Whole Earth Catalog. It read Stay Hungry. Stay Foolish. We come to a point when we are happy with a level of progress and think we’ve learned everything. Accepting the truth that we never stop growing, and there is no limit to our success gives us the ability to keep going. To continue, you must never settle. You must always seek new ways of fixing things and solving problems. Discover new opportunities and be open to learning more.
Faith. Steve Jobs also mentioned faith throughout his journey. Believing so deeply in an idea that you make it come to life. Belief takes ideas and materializes them; and when you realize you can actually make something come to life, the sky becomes your launching pad, not the limit.
Amazon Plans to Add 15,000 Jobs + How to Prepare for the Job You Want
Amazon says it will hire 15,000 more people at its Bellevue, Washington, campus, as part of the company’s effort to allocate new workers after it abandoned its plans for New York City. The e-commerce giant had issues in New York trying to open a facility there, called Bellevue, where 2,000 employees are already located, a “business-friendly city.” It’s also close to the company’s Seattle headquarters. This is good news for those in the job market but if this isn’t what you are looking to do then how do you make yourself valuable in the job market?
Here are four ways to prepare for the job you want no matter your age:
1. Focus on Your Strengths, Not What You’re Lacking
Whether you are 20 years old or over 40 instead of focusing on your age, you need to focus on your strengths. Many young people with limited experience or older people who may not be up to date with the latest technologies focus on what they’re lacking, and this is a big mistake. Do you have the qualifications for the job? Can you bring value to this position? Whatever your strong suits are you should play that up in your resume, cover letter or communications with the recruiter. It’s easy to focus on why you can’t get the job, but the trick is not to let that get to you. Focus on your value!
2. Attack Your Job Search from All Angles
Networking, Answering ads and/or working with recruiters are the most effective ways to land a job. It is important that you just don’t focus on one method but all three. Networking obviously is the ideal way because it allows you to communicate your value directly, but the other methods have their benefits as well. Be proactive and use each method effectively.
3. Show/Explain Your Leadership Abilities and/or Innovation
Leadership and taking the initiative have nothing to do with age. Young leaders and old leaders can be more or equally effective as those who have the “ideal” age. Focus on your leadership abilities and be sure to display this to your current or potential employee. Also, make sure you are keeping up to date with current trends in your industry. This will allow you to show your innovation and add more value to your company.
4. Ask For What You are Worth
Lastly, ask for what you are worth. Don’t let being “too young” or “too old” deter you from asking for a salary you deserve. In fact, trying to downplay your worth may very well backfire on you. Also, if you have been with a company for a long time and your salary outpaces what the position is worth making sure you are adding to your skill set and not staying complacent.
Following these four tips can help you gain or retain employment. What are some other ways? Comment below>>>
New Survey Says that Young People Don’t Like Job Hopping + How to Get Paid What You’re Worth
Contrary to popular belief young people are not keen on job-hopping as most people think. According to a new survey, U.S. millennials and Gen Zers want to stay at their current companies for an average of 10 years and six years, respectively. Additionally, they say work is a major part of their lives, with 65% of people in Gen Z and 73% of millennials saying it’s part of their identities, according to a Zapier-sponsored poll. The age groups’ actions reflect the findings: Seven in 10 say they constantly check work messages outside the office. This is great for corporations but what does that mean for business owners?
If you are a freelancer or entrepreneur you know all too well the fight to get what you are worth. You will constantly be bombarded with offers to work for less or even for “exposure” as many like to call it now. But how do you gain the confidence and know how to charge and get what you’re worth? Here are 3 tips:
Build Your Resume. It’s said that if you do what you love you’ll never work a day in your life. Pursuing your passions and getting paid for it is the ultimate professional dream. You may have to start by working for free or at a discount rate to builds skill, ability, and your resume but once you have some stats under your belt its time to get that money… Keep in mind that if you are only in it for the money it will be difficult to experience long term financial gains so make sure you are pursuing your passion not only the paycheck.
Set a Standard. Pioneers have the ability to set standards. And even if you are providing services already in the market, no one can deliver them quite like you. Style and quality set you aside from others opening up a field of buyers seeking exactly what you offer.
Don’t Give In. A colorist (a person who literally adds color by hand or digitally in films and visual media; yes, there is a path for everyone) from Brooklyn, NYC once told me he had to be firm with pricing because he didn’t want to become that guy who works for free. After you have put in the work and set a standard you must not give in to fees below your ability. Yes, flexibility is key but don’t short change yourself. Getting paid your worth is ultimately the result of you believing in your ability and knowing there are people who will pay for it.