Your Future Taxes

Key Takeaways

  • There are two types of tax planners; historians and futurists.
  • Tax historians look to the past to plan for their taxes and can often be left with costly surprises or pay more taxes than they should by not researching changes in the tax code.
  • Being a tax futurist, where you plan your taxes in the first quarter based on changes to the tax code, employer benefits, and personal situation, helps you control the taxes and keep money in your pocket.

Clipping Tax Coupons

Key Takeaways

  • The 1040 form is used to file your tax return and it’s important to know what’s on it so you can take advantage of any areas where you may be able to save money.
  • The main sections of the 1040 form are Income, Adjusted Gross Income, Tax and Credits, and Other Taxes.
  • There are several ways to file your tax return ranging from doing it yourself, to using online programs, community volunteers, or hiring an accountant or tax preparer.

Refinancing Your Mortgage – Hidden Benefits

Key Takeaways

  • The benefits to refinancing your mortgage are savings on interest over time, getting rid of Private Mortgage Insurance (PMI), receiving cash for the difference, and using the savings from the reduced monthly mortgage to pay off other debts or save money.
  • Consider refinancing if it takes 1-2 years to break even on the closing costs versus monthly savings, if the new interest rate is a ¼ % lower or better, you have a credit score of 740 or greater, and you’ve got all the necessary documents for loan underwriting.
  • The goal of refinancing your mortgage is to get the best terms and the best interest rate.

Leveraging Expenses

Key Takeaways

  • There are actually ways you can use your expenses as leverage to help you pay off your debt and save more money.
  • Developing a budget, paying your bills on time, and prioritizing expenses helps to gain clarity of your financial picture, keeps your expenses low and credit ratings high, and helps you build a strategy to best leverage your expenses to save money.
  • Prioritizing your expenses helps you take advantage of tax levers that can ultimately help you save more money over time.