Week 7: The Fool-Proof Guide to Taxes

It is now time for Week 7 of your Personal Finance Resolution, which brings us to everyone's favorite topic: taxes.In case you missed one of our newsletters, check out weeks 1-6 below:

Week 1: Assessing Your Current Financial Health

Week 2: Setting Up a Budget

Week 3: Establishing Financial Goals

Week 4: How to Get Out of Personal Debt··· For Good!

Week 5: Slashing Your Spending & Expenses

Week 6: Making the Right Investment Choices

This week's Activity for Success:

1) If you haven't done so already, gather and organize your 2013 tax documents

2) Complete your 2013 taxes, provided you have received all necessary documents

3) Assess whether you should alter your withholdings for 2014

This week we are going to do things a little differently.
Since taxes are such a hot topic this time of year, we've been busy writing several informative articles about taxation and all the things you should know about it. Listed below are some of those articles, with a brief description of each. Be sure to read through them, since taxes are a big part of your personal finances.

Introduction to Taxes and Basic Information

You might think that taxes are a necessary evil better left for professionals, but understanding the basics can help you minimize the total amount of taxes that you pay.

End of the Year Tax Planning Tips

Many people don't even think about their taxes until March. But there are good reasons not to wait until the deadline looms in the near future. As the end of the year approaches, there might be some things you can do to reduce the burden you will have when you files your taxes. Here are a few ideas.

Tax Implications of Different Types of Investments

There are different tax implications for each type of investment, including stocks, mutual funds, bonds, etc. Learn more about them here.

A Guide to Filing Your Tax Returns

Unless you are a dependent or you did not make any money during the year, you will have to file a tax return using Form 1040 (or one of its variants, such as 1040EZ or 1040-NR). Most people need to file by April 15 for the previous year's tax return. You start getting reports on your income from your job and other financial institutions in January.

Explanation of the Major Factors Affecting Your Tax Returns

Learn about the different factors that affect your tax returns, including deductions, home, family, gifts, marriage and children.

After reading through these articles, you should have a better understanding of the tax system. We'd like to leave you with a couple tips for doing your taxes:
  • If you are getting a large Federal return this year (before any tax credits), you may want to consider lowering the tax that you pay each pay period. Speak to your Human Resources department or to a tax professional.
  • Before filing your taxes for 2013, make sure that you have looked into all possible deductions and credits
  • Do not forget to claim any interest income, dividends or capital gains that you may have made during the year
  • Check your math!

This week's Activity for Success:

1. If you haven't done so already, gather and organize your 2013 tax documents

2. Complete your 2013 taxes, provided you have received all necessary documents

3. Assess whether you should alter your withholdings for 2014

Stay tuned for next week's issue, which will cover Insurance: What It Is and Why You Need It.
By InvestorGuide Staff

Copyrighted 2016. Content published with author's permission.

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