Tax Due Today! What Now? April 17, 2006
Tax day is here for the US. So if you owe money to the IRS, you’ll need to send payment along with your request for an extension. Otherwise, you will be subject to interest and penalties on the amount owed. I went for quick peek at the post office this morning, and saw a long line to mail out tax forms. Hope you weren’t one of those people! If you’ve already sent in your tax forms, congratulations. But there are some things you can do to start preparing for next year. Here are some suggestions:
- Review your tax withholding for 2006 - if the government owed you money this year, consider reducing your withholding amount so you don’t give away a free loan to the government.
- Organize your receipts and spending - get a file organizer or a folder where you can save your receipts and expense records so you have them in one place. This has helped me reduce time for tax preparation.
- Create a spending budget for 2006 - knowing where your money is going is a key to saving money. Stick to your budget!
- Put away emergency money - If you received a refund, or a year end bonus, put it in an emergency fund, so you will be comfortable when an unexpected event comes along.
- Donate to charity - Each year, I donate to charity, but I wish I had more to donate. During this season, having a tax return or bonus allows me to donate. Do so now before you lock away your money or spend it.
- Chill - Reward yourself for your hard work. Be nice to your family and neighbors, and enjoy the warm weather!