Ah, tax season - the time of year that brings more confusion than a Rubik's Cube in the hands of a toddler. As we hurtle toward the 2024 tax-filing season it's time to don our financial superhero capes and face the looming specter of tax filings for Tax Year 2023.
But fear not! I bring forth not just tips, but a sprinkle of humor to sweeten the bitter pill of tax responsibilities. Here's how:
1. Get Organized, Embrace Chaos
Yes, I'm talking about that pesky paperwork you've been avoiding like a plague of locusts. Take a deep breath and dive headfirst into the sea of receipts, forms, and statements. Remember, chaos isn't always a bad thing. Channel your inner Marie Kondo and declutter that financial mess. Who knows, you might unearth treasures like that long-lost candy wrapper from 2019 - sadly, not a deductible expense.
An insider’s tip for starting 2024 off right…keep a folder, get a fancy one if you want to, and make it your tax folder. Throw it all in that folder all year long. You’ll find yourself in a much better situation at the end of the year and minimize your tax season stress!
2. Maximize Deductions (Without Summoning the IRS Goblins)
Did you know you can deduct gambling losses?? Yes, you read that right. While gambling winnings are taxable, losses can be deducted if you itemize deductions. However, these losses can only be deducted up to the amount of your gambling winnings. Get a printout from the casino if you don’t already log your wins and losses.
3. Invest Wisely: The Tax-Saving Unicorn
Investing in retirement accounts can be as elusive as spotting a unicorn at a petting zoo. But fear not, for it's not just a myth! Max out those contributions to your 401(k) or IRA to teleport your hard-earned money to a faraway land called Tax Deductionville. Watch in awe as your taxable income shrinks like a frightened turtle retreating into its shell.
If you don’t already have a financial advisor, we here at Piper Accounting Solutions highly recommend getting one. We can refer you to one of our trusted partners to care for you and your future retirement.
4. Don't Dodge the Deadline Dragon
Sure, the temptation to delay filing your taxes is real. But remember, procrastination might turn you into a knight battling the dreaded late-filing penalties dragon. So, mark those calendar dates with colorful stickers, set reminders, and channel your inner Olympic sprinter to meet that deadline. Trust me, you'll thank yourself later when you're not facing the fiery wrath of overdue taxes.
5. Donate Your Arizona Tax Liability (No really!)
Ah, the mystical land of Arizona, where cacti stand tall, and tax credits dance in the scorching sun like shimmering mirages. Enter the realm of dollar-for-dollar tax credits, where the taxman wears a cowboy hat and shouts, "Yeehaw!"
Picture this: as the sun sets over the Grand Canyon State, Arizonans perform a tax credit tango, swaying to the beat of charitable contributions. It's a tax oasis where donating to schools, charities, and even wildlife preservation feels like playing a game of tax deduction roulette. So,
saddle up, folks! In Arizona, the tax credit game isn't just a game—it's a Wild West adventure where every dollar given comes back riding on a tax-credit horse, ready to wrangle those tax bills into submission. Giddy up, tax credits! Check out the giant list of places you can support at https://azdor.gov/tax-credits.
6. Seek Professional Help (No, not the Therapy Couch)
When in doubt, call in the cavalry - tax professionals! These wizards of the financial realm possess magical scrolls filled with tax wisdom. They're the Gandalfs to our Frodos, guiding us through the treacherous terrain of tax laws. However, if professional help eludes you, online tax preparation tools are the trusty sidekicks to save the day. Just remember, unlike Gandalf, they won't be riding in on a majestic steed.
Another insider tip: Make sure you find a QUALIFIED Tax Professional. Unfortunately, the IRS does NOT require certification or a degree to be a tax preparer. So, make sure the person you hire for help knows what they are doing. Certified Professional Accountants (CPAs) or Enrolled Agents (EAs) are a safe bet because they have gone to school or passed extensive testing for their credentials.
In conclusion, dear readers, while tax season may seem like a dark and stormy night. But armed with these tips, you can navigate through the thunder and lightning with a hint of humor.
So, gather your receipts, polish your calculator, and embark on this tax adventure with bravery, a touch of whimsy, and maybe a few strategically placed funny memes. After all, laughter might not pay your taxes, but it's the best way to keep the taxman at bay!
Cheers to surviving tax season 2023 - may the refunds be ever in your favor!
Felisha Leffler is the principal at Piper Accounting Solutions.
Armed with these tips, you can navigate through the thunder and lightning with a hint of humor.
