3 Ways You’re LOSING Money By Getting A Big Tax Refund

3 Ways You’re LOSING Money by Getting a Big Tax Refund

Updated for 2021 Most of us celebrate getting a huge tax refund – we have big plans for that money every year. We act like getting that big chunk of change is a good thing, but it’s not. In fact, you actually lose money by giving the Federal government an interest-free loan every year. According to the IRS, the average tax refund for tax year 2019 was $2,549, which works out to $212 a month. But if you put that money to work for you instead of lending it to them, you could end up with a much bigger pile…

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Two Education Tax Credits Put Big Money Back In Your Pocket

Two Education Tax Credits Put Big Money Back in Your Pocket

UPDATED FOR 2021 Paying for college is crazy expensive - even when it's mostly online. And if you’re footing the bill for more than one education, your finances are probably stretched pretty thin. Two tax credits can help put more money back in your pocket: The American Opportunity Tax Credit and the Lifetime Learning Credit. And the more generous of the two credits - the AOTC - chops $2,500 per student off your tax bill. Plus, a pretty big portion of that tax credit is refundable – meaning if you don’t owe any taxes, you can get cash back. If…

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Help! I Got IRS Notice CP-2000

Help! I Got IRS Notice CP-2000

How to handle tax notices from the IRS You just got a letter from the IRS. Your first reaction may involve panic… and that can lead to not dealing with the letter at all. Avoiding that IRS notice could end up costing you a lot of money. So take a breath, grab the letter, and read it. Chances are what you got was a CP-2000, a notice of underreported income. The most important thing to do here is respond. And we’re going to talk about exactly how you can do that. But first, let’s figure out why the IRS is…

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3 Big Tax Changes You Need To Know For Tax Year 2020

3 Big Tax Changes You Need to Know for Tax Year 2020

Please Note: This article may contain affiliate links. If you click on those links, I may receive compensation.   The last you want to be thinking about now is next year’s tax return. This year has been chaotic, frightening, confusing, stressful, and mostly exhausting. So piling on the thought of taxes sounds… taxing. But this is exactly the time to think about it, because you can still make changes that will affect your 2020 tax bill – the one you’ll file in 2021. There have been so many changes that it’s hard for even CPAs to keep up. But those changes…

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How To Open A Roth IRA In Under 30 Minutes

How to Open a Roth IRA in Under 30 Minutes

You need to do this today. Single moms – women in general, actually – are waaayyyyyy behind when it comes to retirement savings. We all have plenty of reasons for this… but when we’re 80 and out of money, those reasons won’t matter at all. So today we are going to take 30 minutes to open up Roth IRA accounts. We’re focusing on Roth IRAs specifically because you always have free and complete access to the money you put in. This takes a huge barrier out of the way of retirement savings: This money is not locked up, and you…

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