Your return is an interest fRee loan to the Government: What to do to avoid it for 2019

I know, I know you all want your tax return because you deserve it. What if I was here to tell you I thought that was not a statement of the wise? Did you know that your tax return that you receive back from the Government is money that you could have kept in your pocket?

Here is the deal, I am going to let you in on a little secret, the Government does not want you to know. Your dollars you earn through out the year and then get back in your tax return is you actually giving a small interest free loan to the Government. Once your paycheck has the deductions taken out of it, they shuffle the funds around for their use and then they decide, based on a tax code what portion to refund to you after you file your taxes.

It is not a sobering thought to consider, I know. However, you have options:

HIRE A PROFESSIONAL 

• ​Having a team on your side who can help you navigate your withholdings if you are a W2 employee. Or your estimated tax payments if you are a business owner is your number one weapon.
• These professionals know the tax code and can leverage your financial data to adjust the amount you pay into the Government throughout the year based on your earnings and previous deposits
• ​Trust me, there is wisdom and wealth found in hiring professionals. Yes they cost money. Like all things in life, it costs money to utilize someones professional knowledge. With easy access to online resources like TurboTax and H&R Bock it is tempting to file your returns on your own. It is easy and convenient, but it likely is not as affordable as you think. Unless your return has zero anomalies that make your financial situation unique than utilizing an online software or personal who does tax preparation will do. If you have a small factor that makes you unique I believe utilizing a professional who knows tax law is your best option. A good CPA will pay for themselves in the money they are able to save you on your return.

REVIEW YOUR PAYCHECK

• Do you remember the documents you filled out when you were first hired at your place of employment? The document that you cringed to fill out because you had no idea what number to put in the box? Yes the one that you elected your withholdings, your W4. Schedule a time, as soon as you finish this post to meet with your Human Resources Director. Review the number you placed on your form and bring that number to your CPA and CFP. They will guide you and educate you on what number you should adjust it to.
• With the new tax code you could be over withholding or under withholding for 2019. You will understand the impact of your withholdings when you file your taxes this year. 
• Additionally, while you are reviewing your withholdings. Discuss with your HR Director what employee benefits your company offers and if you are choosing to leverage them all. You would be surprised how many employee benefits are left unused based on the employees lack of education. If you are not taking advantage of the Retirement Match, make it a priority for 2019.

www.irs.gov/individuals/employees/tax-withholding

Be an advocate for your financial story. You are the author. If you are frustrated with the outcome of this years tax return, or the outcome is a shock to you. It likely means you are uneducated about your financials in some capacity. Get in the know by hiring professionals who can help educate you and prepare. You need to be your own advocate and pursue your own destiny. Wealth with not happen to you. You need to strategically pursue it.