YEBies Presents: Weekly Tax Tips For The Win (WTTFTW)

First let me apologize for the lack of updates, but I learned that absence makes the heart grow fonder or something deep like that.  I just want to drop some tips/tricks I learned in my years.  Nothing technical this week, 2 quick tips.

Tax Tip 1:  While its always nice to get a hefty income tax refund, ideally the best case scenario is where your refund is 0.  I know this may go against your general understanding of tax season but let me explain.  Getting a refund means that you paid too much in taxes throughout the whole year, so the IRS is essentially holding your money and returning it to you.  It could have been in your own account earning interest.

Tax Tip 2:  The IRS usually releases a high profile tax fraud/failure to pay taxes case as it get closer to April 15th.  This is a tactic used to instill fear in the tax payer, don't be fooled.  I'm not advocating cheating on your taxes, but don't let one popular case trick you into changing your tax return.  Stand firm in the tax positions that you take on your return.

Alright, I'll be back in 2 weeks with some more tax tips.  April 15th is right around the corner, get your taxes done. That's it for this edition of WTTFTW, by now everyone should have their W-2's and 1099's and should be thinking about their tax returns. Leave questions in the comment section or e-mail and I will try to answer all questions.


You Resident Taxpert


EconomicsDaniel Kawah