Hello, my name is Jerome Silas. Welcome to my website about creating and following a healthy household budget. When I was in college, I tried to create a smart budget to save all the pennies I could after paying my bills. Unfortunately, I jumped in too fast and created a budget that was impossible to follow for the long term. Through the years, I have learned all about the methods that work best while creating and following a budget. I would like to share those methods with you all to help everyone create a healthy household budget. Thanks for your time.
It's tax time again, and if you're unemployed, you're most likely dreading the paperwork and the possible expense of filing. You might just be suffering from fear of the unknown, though, because even without a job, there are still a lot of ways to ease the burden of the season and all the headaches you think come with it.
1. File Before The Deadline
Not only will filing on time bring you a possible refund, it will definitely take a load off your mind. Unemployment leaves you in a state of flux and constant worry, so take care of what's under your control to give you some sense of stability. Also, the earlier you understand your tax status (whether you owe or not), the earlier you can prepare for it.
2. Accept Any Help You Can Get
Don't allow your feelings of discouragement to prevent you from getting free help. While you're temporarily unemployed, you may qualify for help with food, bills and other necessities, including health insurance. No matter how tough your job search is, you still need the basics in life to sustain and maintain you.
3. Understand The Tax Bracket You're Now In
Losing your job may be a negative, but the reduction in income could very likely put you in a more favorable tax bracket, which would be a huge positive. This may open the door for certain tax deductions, such as earned income and child or dependent credits.
4. Keep Track Of Your Child Care Expenses While Job Searching
If you're paying a sitter every time you have an interview, you should be able to deduct that expense on your tax return. Most taxpayers are eligible for a break on child care expenses while they're working; however, this perk also applies if you are simply looking for work, too.
5. Be Prepared To Pay Taxes On Unemployment Income And Severance Pay
As difficult as it is to manage your household on unemployment income, you must be prepared to be taxed on it, along with any severance pay you may have received from your previous employer. Although you may feel poor and that you're eligible for a break, don't be shocked by the fact that Uncle Sam will still have his hand in your wallet come tax time.
6. Hire A Tax Preparation Service
Even if the last thing you feel you need now is another bill, hiring a tax preparation service could actually save you money. There have been a number of changes to tax laws recently, and situations like yours are complicated. Translating your tricky financials into tax terms is frustrating and confusing, but a tax service can sort it out, putting you in the best possible position when you file. A professional can find deductions you may not be aware of, make sure you're completely compliant in your filing (which saves future worry and expenses), and maybe even squeeze out a refund for you.
Tax time can be tough on anyone, but when you're unemployed, it's likely even more discouraging. It's not the end of the world, though, and if you keep your head up and reach out for the help of a professional like Jeffrey Beebe CPA, you just might find a silver lining in the financial clouds above you.
Share7 March 2019
