Money Musings 💭 How I do my taxes 🫠
We’re in the midst of tax season and the dread is palpable. 🫠
There’s nothing like adding a large and often confusing annual task to our to-do list - on top of everything else we’re all trying to juggle.
If you expect a refund, you might have already filed. If you expect to owe taxes, you might be putting it off. Or maybe you’re not sure and are feeling daunted by the process.
Wherever you are, I get it!
While I can’t say I LOVE doing my taxes each year, I have figured out a process (for now) that makes filing manageable and relatively organized. Probably as good as taxes are going to get.
Given my business is a S-corp, I work with an accountant. Important note: This doesn’t mean that I get to wash away responsibility for my taxes. Regardless of who or what service files your taxes, you are the one ultimately responsible. You are the one who signs on the dotted line. Le sigh. 😮💨
If you file on your own or use a service, you’ll be doing a lot of the same things I do. Because in order to fill out our tax forms (and eventually file), we need to have all the relevant info.
GATHER DOCUMENTS.
I keep a list of all the documents I needed last year for my business and personal taxes. I scan and upload anything that comes in the mail. I log into each account and head to the tax section of the website to see what tax form goodies they have for me. 😆
KEEP A RUNNING LIST.
I keep a running list in Asana (but you can keep it anywhere) of potential tax relevant things that came up during the year. Some examples - J changed jobs (quite relevant), we maxed out our HSA, and much I contributed to my 401(k).
This info helps me figure out if there are additional forms I need. Like, there is an HSA related tax form (I forget about it every year). Or it reminds me to double check that something is being accounted for (pun intended).
READ IT TWICE.
Once the forms are ready, I read them over twice. Google becomes my friend for anything I don’t understand. Double check to make sure your social security number and personal info are correct AND that you’ve entered the correct bank info.
PLAN AHEAD FOR NEXT TIME.
As relieved as I am to finish the process, I do take a half hour or so to review. What would have made this tax season run more smoothly? Maybe (but actually 🤪) I struggled to find my document list when it was time to gather everything. Where can I keep it for this next year so it’s easy to find?
It’s also a great time to plan ahead for deductions you’d like to maximize like contributions to your IRA or 401(k). Or if you owe more than expected, you can create a sinking fund for your taxes for next year.
If you’re looking for more guidance on your own tax process, look out for our tax season money moves series (it kicks off next week right here in the newsletter). We also have some great resources on the blog.
And don’t hesitate to reply with anything you’d like to learn more about.
MONEY MOVE OF THE WEEK
HAVE MONEY PARTIES.
If you don’t set aside time to deal with your money, it’s probably never going to happen. Things will always come up and get in the way and your money to-do’s will continue to hang over your head. The solution? Money Parties. 🥳
A Money Party is time you set aside to show your money 💵 some love.
First, the party 🎉 part. I call it a party for a reason – make it fun. Play some music (I have a fun $ playlist (on Spotify and on Apple Music), get cozy, pour your favorite beverage, and reward yourself afterward.
Then, make an agenda. A Money Party is a great time to check in on your spending, track your goal and cancel any subscriptions you’re not using.
Make sure to end on a positive note. What’s one thing you want to celebrate this month? What are you proud of about last month? Having a money party is something to celebrate in and of itself!
If you want a step by step guide to having your first money party, I have this guide for you!
YOU GOTTA SEE THIS
CELEBRATE WOMEN’S HISTORY MONTH BY DOING THESE THINGS.
March is Women's History Month – an annual declared month dedicated to commemorating and celebrating the contributions of women in American history. Here is a list of ways to celebrate! 🎉🎉
Attend an event.
HOST events for Women’s History Month
Brave Girls Virtual Storytime: Just Like Me: National Women’s History Museum
IWD 2023: Impacting Positive Change by Embracing Equity Webinar
Support a women-owned business. You shared some of your favorites here! If you have any you’d like to add to the list, hit reply and let me know. 📧
Check out one (or many) of these movies.
Support women authors and creators.
Host a talk at your company. Bring in women speakers to come give a talk at your company. You can do a more workshop-like format (like a personal finance workshop with cough:cough me) or a more informal fireside chat where outside speakers and / or women internally dive into a relevant topic