Let’s be real – taxes are about as fun as a root canal. But don’t fret, because the Plastics are here to save the day with their own unique brand of tax planning inspiration. That’s right, it’s time to channel your inner Regina George and bring some humor to your tax season preparation with this walk down memory lane. So sit back, relax, and let the Mean Girls be your guide to a less painful tax season with these 5 timely, topical, well-polished tips.
- “You can’t sit with us!” – Knowing your (tax) status
Just like Regina only allows certain people to sit at the cool table, the IRS only allows certain people to file under certain statuses. Make sure you know if you’re single, head of household, married filing jointly, or married filing separately. Each status has different tax implications and could affect how much you owe and the credits and deductions you’re eligible for.
- “Why are you so obsessed with me?” – Taking advantage of tax credits
Love your tax credits like Regina George loves herself. Tax credits are more valuable than tax deductions because they can reduce your tax bill dollar-for-dollar. Some common credits include the Child Tax Credit, the American Opportunity Tax Credit, and the Earned Income Tax Credit. Channel your inner Regina and make sure you’re giving yourself all the credit(s).
- “The limit does not exist!” – Maximizing your deductions
Just like Cady’s math tournament-winning answer, there’s no limit to the amount of deductions you can take advantage of. Maximizing your deductions can reduce your taxable income and lower the amount of taxes you owe. Some common deductions include charitable contributions, medical expenses, and student loan interest. Don’t limit yourself and make sure to take advantage of all the deductions available to you for a brighter financial future.
- “On Wednesdays, we wear pink.” – Planning for estimated taxes.
Just like everyone knows the dress code on Wednesdays, when you know what to expect – you’re in control. So, if you’re self-employed, a freelancer, or receive other types of income that aren’t taxed at the source, it’s important to plan for estimated taxes. By making estimated tax payments throughout the year, you’ll avoid any surprises or penalties come tax time. Making estimated tax payments helps keep things under control so you won’t have to sport an oversized pink polo just to keep your seat at the table.
- “Put It In The (Burn) Book” – Keeping good records.
Just like Regina George’s Burn Book, keeping good records of your receipts, invoices, and other important tax-related documents is key to keeping your financial secrets safe and secure. Good record-keeping helps you keep track of all your deductions and credits, so you can maximize your savings come tax time. And just like the Burn Book was for Regina, good records can be your secret weapon, helping you avoid any unwanted surprises or penalties come tax time. So, don’t be afraid to get organized and start keeping those records in a safe and secure place. Your financial future will thank you.
Don’t stress about tax season, just follow these five tips and you’ll be well on your way to keeping more money in your pocket. You go, Glen Coco.