Tax Season Deadlines and Priorities
Tax season is underway, with deadlines for filing personal income taxes approaching rapidly. Taxpayers must prioritize maximizing returns while steering clear of scams. Rachel Cruze, a personal finance expert from Ramsey Solutions, appeared on Fox & Friends to deliver key tax strategies.
It’s like you giving Uncle Sam a loan interest free, and it’s sitting there where it could’ve been in your paycheck, helping you pay off debt, helping you save, helping you give, spend, all of it.
Balancing Refunds and Liabilities
Cruze stresses finding the middle ground: neither a large refund nor significant owed taxes. For those consistently receiving big refunds without changes in withholdings, expect similar outcomes this year. Employees should consult HR to adjust W4 forms, reducing taxes withheld from paychecks.
Recognizing and Avoiding Tax Scams
Reports of suspicious tax return activity reached 7.8 million in 2022, per the Identity Theft Tax Refund Fraud Information Sharing Mission and Analysis Center. Outreach from the IRS via phone or email demanding Social Security numbers signals a scam. Legitimate IRS contact occurs exclusively through certified mail.
Never give [your social security number] out over email.
If something is feeling fishy … it’s probably because it is.
Budgeting to Track Income and Expenses
Cruze recommends a zero-based budget, where income minus expenses—including giving and saving—equals zero. Apps like EveryDollar facilitate this by assigning every incoming dollar to a specific category. This approach clarifies spending, especially for those whose 2022 earnings seem unaccounted for.
So you can actually say, ‘I know exactly where my money went.’ You want to be intentional, and the budget helps you do that.
Leveraging Deductions
Most donations qualify as write-offs, offering both financial relief and alignment with personal values. Generosity forms a core element of sound financial planning.
Opening our hand and being generous, I think, is a huge part of our financial plan.
