From getting a tax refund to discovering new tax credits that can put more money in your pocket, here are eight reasons to love tax season!
UPDATE: The Treasury recently announced tax changes and updates in response to COVID-19, updates include an extension of the first installment of tax year 2020 quarterly estimated taxes to July 15, 2020. Some information in this post however requires additional IRS guidance and may require updating. We will update as soon as we receive additional guidance. Please see the latest information on tax deadlines and updates related to COVID-19 here.
For some, the IRS’s tax filing deadline of July 15 brings as much cause for excitement as an upcoming dentist appointment. However, it doesn’t have to be that way. Many have found ways to like—even love—doing their taxes. Here are a few examples that just may help give you a new outlook on tax season.
1. Treat your refund as a bonus
Without a doubt, the best part of tax season is discovering you're getting a sizable tax refund. Not much can top that “yes” moment when you realize there’s an extra check on the way. After all, who doesn't like getting money back from the government?
2. Show off your skills
Many taxpayers take pride in being able to successfully organize all of their financial information and file an accurate tax return. Checking off a completed tax return builds confidence and allows you to focus financially on the rest of your year.
3. Know where you stand financially
Tax season is the perfect time to review your income for the year. If you've made more money than expected, it always feels good to see those numbers on paper. If you earned less, it can be a good motivator to do better in the coming year. Either way, checking in at tax time is a great way to help plan for the future.
4. Control of your finances is power
Whether you do your own taxes online or pay a professional to do them for you, you'll have to collect and assemble all of your financial data to get your taxes done. Understanding where all your money is and where it's coming from can be a satisfying experience, and tax season provides the perfect opportunity to take control.
5. Make adjustments in your favor
Want to save more money? Take advantage of tax season to make favorable adjustments in your financial life. If it seems like you're going to owe this year, you may be able to make contributions to a tax-deferred retirement plan to qualify for various tax credits.
6. Doing what’s right pays off
Most people feel good when they do the right thing, both for themselves and for society. Without tax dollars, governments grind to a halt and basic services can't be provided. Tax season gives you the chance to keep society moving by putting in what you owe.
7. Discover new opportunities
Tax codes can get interesting when they change to your advantage. New tax credits are often introduced that put money directly in your pocket. For example, you could get a Premium Tax Credit that can offset the cost of health insurance.
8. The more you know, the better
Tax season is the perfect time to get educated on your taxes—everything from how to do them to where your tax dollars go. The financial news media comes alive during tax season talking about all kinds of interesting tax topics, whether your interests are in saving money or in supporting social programs.
All you need to know
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