“This is my first year having to pay taxes, and boy– it’s not pretty. It seems like the the government is trying to nickel and dime me for everything, dwindling my income down to less than three quarters of what I believe it should be…” If this is racing through your mind, this is the article for you!
With U.S. Tax Day… quickly approaching (April 14th), it’s time that many of us need a helping hand to keep the stress away. This article, “How to Get Rid of Tax Debt” will offer some insight into the world of tax debt repayment as well as some tips to keep you from incurring tax debt in the future.
Let’s get things straight–
We pay taxes for some very important reasons. Roni Deutsch calls these the Four Reasons (R’s). They are Revenue, Re-Distribution, Repricing, and Representation. Revenue pays for our public school systems, roads, and hospitals. Redistribution refers to money given to under-privileged masses like those who are handicapped and those living without a lot of money. Repricing is simply the taxes we pay for our every day purchases. Representation is our right as citizens to choose where to allocate money to keep the government accountable.
Tax Debt occurs when one does not or cannot make their tax-payments. Tax debts becomes burdensome and can often be caused by mis-calculation of taxes or bad financial management. To combat this, one must simply plan ahead. Prevention is the best resolution because bad tax habits are hard to break. Some tips we recommend are:
- 1. Always keep your receipts and invoices – This should be a given.
- 2. Keep calm and don’t panic – Keep your cool, they’re just taxes.
- 3. Avoid Loans – They will wind up costing you more in the long run. They may seem like the easy way out, but it is best to figure things out and not let them pile up. Loans add up very quickly.
- 4. Consider Offer in Compromise. The government offers a lower-priced tax debt repayment if you meet some qualifications and complete form 656 from the IRS.
- 5. Seek a Professional. Do not try to do it alone. You can also purchase some software like Quickbooks.
There you have it, a quick and insightful guide to the world of tax and debt repayment. Thank you for reading this article, and we hope you understand a bit more about taxes and can get your taxes done on time so you can avoid tax debt altogether.
I understand taxes much better now. I didn’t really understand where all my money was going before, but it’s much easier to see why taxes are so high now…
I don’t think it’s fair though. I have to pay enough to amazon for my marketplace account. It’s not fair that I get nickeled and dimed for everything!