Tag Archive for ‘taxes’ at Serving Bread

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A few weeks ago, I mentioned that filing my taxes is helpful in caring for my personal finances. Most people probably hate doing their taxes for many reasons: it’s cumbersome and confusing. Our tax system is very complicated, which is the reason why I enjoy doing them.

When I’m filing my taxes, I am able to have a better sense on how the government views my money and how it wants to tax it. As I’ve filed my own taxes over the past 10 years, I have learned more about the tax system and I can prepare better over the course of the year how I spend my money and how to take advantage of the various tax breaks available to us as a family.

I recognize that we can familiarize ourselves with the tax system without having to do our own taxes, and if that works for you, that’s fantastic. I personally have learned more by doing my own taxes (and these days, with electronic filing capabilities, it’s not too difficult to file your own taxes).

Some tips to do your own taxes:

Spend a day to collect all necessary paperwork. I have a big folder where I put all of the necessary forms to file my own taxes. This includes W2s, 1099’s, 1098’s, etc…
Purchase one of the eFile programs such as Taxcut or TurboTax.
Set aside an entire day to fill out the program. If you feel stuck, search on the internet for a particular term and how it may apply to your situation.
After you are done going through the program, do not file your taxes with the IRS. Wait a couple of weeks before you file to allow you time to remember if you forgot anything during the filing process. This was important for me last year when I realized I had missed a couple of deductions that eventually saved me a couple hundred dollars in paying taxes.

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Finance Friday 19: What’s your new year’s resolution?

You know you’re an American when…

Finance Friday 18: Your car is not an investment

Proposition 89

Pundits tell us that our economy is weak. One headline in my Yahoo News Reader said that the economy needs “rescuing.” Two of the three branches of government are focusing their energy to care for our economy, the Federal Reserve is urging for a federal response to our economic downturn, and every presidential candidate is going back to the adage that worked so well for Bill Clinton, “It’s the economy, stupid!”

The big proposal on the table is a tax refund to middle-class Americans. Here’s what they are talking about in Washington:

Aides to lawmakers involved in the talks said the White House is pressing for tax rebates of $800 for individuals and $1,600 for married couples. Lawmakers were likely to settle on a $500 rebate for individuals, said an aide involved in the talks, with details for couples and people with children still being negotiated.

Fed Chairman Fred Bernanke “endorsed the idea of putting money into the hands of those who would spend it quickly and boost the flagging economy.”

Our economic model depends strongly on consumerism. For example, the lackluster holiday season that just passed has many politicians and economists worried that our economy is in trouble. What does it mean for us that we live within an economic model that encourages or even thrives on buying more things? This model is in contrast to the Bible’s teachings. The Bible is clear on how we should relate with “stuff.” It doesn’t teach accumulation but radical generosity and faithful stewardship. (See Luke 12)

Crisis moments often teach us about ourselves and our values. As we feel an economic downturn that could very well turn into a recession, we will see (if not already apparent) our values exposed. However we may feel about our economic model, it’s important to remember that this is far from what the Bible would preach. I don’t pretend to know how God would intend for us to relate economically, but it’s far from American capitalism.

Having said that, we should remember that there will be plenty of resources and wisdom on what should be done to help our economy and how we should steward our finances. Anything that is not shaped by what Scripture teaches falls short to be our needed solution.

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Finance Friday 24: The bad among us

Finance Friday 26: Our relationship with stuff

Finance Friday 28: Peace comes from God

Finance Friday 17: First step to get out of debt