How To Win Next Tax Season
How was this year’s tax season for you? Did you pay too much in taxes or did you get a big refund? On this week’s episode of The Homeowner Prep Podcast we are covering 3 strategies you can use to win next tax season. Disclaimer: Homeowner Prep and Eric Hellon are not tax professionals, this information is being provided for educational purposes only and we strongly suggest you contact a tax professional for your specific situation.
What You’ll Learn from this Episode:
- The tax benefits of starting your own business
- Why you should donate more money for additional write-offs
- How buying a home could be your best tax benefit
- And much more!
00:00 Did You Win This Tax Season?
00:33 Welcome to The Homeowner Prep Podcast
01:10 Start A Business!
02:22 Uncertain Times Right Now
03:10 Donate More Money
03:43 You Benefit From Buying Real Estate
04:30 How Do You Define Winning?
05:01 Getting Started With Homeowner Prep
05:36 Connect With Us On Social Media
“How you define winning may be different.”Eric Hellon
Full Episode Transcript:
Now that tax season is over. My question is, did you win? On today’s episode, we’re gonna be talking about a few tips that you can implement to make sure that you win next tax season.
Welcome to the Homeowner Prep Podcast, where every week, we educate and encourage inspiring homeowners to help them buy their first home faster. If you aspire to own a home, you’re in the right place, so enjoy. Do us a favor and leave a review, a rating, and be sure to subscribe. Now, let’s get to this week’s episode.
Hello and welcome to another episode of the Homeowner Prep podcast. I’m your host, Eric Hellon. On today’s episode, we’re gonna be talking about taxes, and I am not a tax professional, so let me just start out with a little disclaimer saying that you should definitely seek the advice of a professional tax advisor. If you’re looking for ways to win in your taxes, if you’re looking at your taxes and figuring out why you’re either paying too much or you’re not getting the refund that you think you should get, then you should definitely talk to a professional. But on today’s episode, I am gonna provide a few general tips that can help you win next tax season.
The first tip that I have is start a business. Now, this is actually twofold. Yes, one of the biggest ways to cut back on your income taxes is to actually be running a business where you can have write-offs against that income and only pay the taxes that are due on the income that’s left over. That’s a big benefit and you should definitely take advantage of that when it comes to owning a business. But don’t start a business just for the tax reasons. What are you passionate about? What do you love to do? What is some skill or talent that you have that others really recognize in you and say, “Hey, you should do that. You should make money doing that. You should earn some income doing that.” Look at those things. Take a minute and really just analyze what you have a passion for and figure out if there’s a way for you to earn additional income doing said passion.
This will help you in your taxes because earned income, your W-2 income, payroll taxes are the highest taxed form of income, so you wanna have as little of that as you can. But with a business, you’re able to write off some of the expenses and then only pay taxes due on the income that’s left over. So that’ll definitely help you win next tax season.
Now, the second part of starting a business is the fact that we are in uncertain times. I know you hear the news. I know you see the headlines. There’s a lot of layoffs happening right now, and so if you have the ability to start a side business, a side hustle if you would, to earn some additional income and protect the income that you have, I would say start now.
Don’t wait until your job lets you go, or your job downsizes, you know, a whole department before you start thinking about what is that side business or that passion that you have that can earn additional income. Start thinking about that right now. We are in some uncertain times. There are a lot of jobs being lost and we see it coming, you know, so if you see some uncertainty, if your job seems unstable, take advantage now. Don’t wait.
Second, major key to winning in your taxes next season is figuring out a way to donate more money. When you do donate, you do get write offs. Our government and taxes are set up in a way that if you donate money to non-profit organizations, there are opportunities to write those off. So take advantage of that, whether you’re donating clothes and shoes to Goodwill, get a receipt. If you’re donating to a worthy cause, you know, get a receipt, get some type of tax form showing that. Hey, you made that donation. It’s okay to write that off on your taxes.
And now the third major key is a big one. It’s what the government really wants you to do, and that’s buy real estate. The government is incentivizing you to buy real estate so that way you can write off the interest that you’re paying on your mortgage.
Now it’s not available to everybody. There are limitations to how much you can write off, and it’s based on what your balance is on your mortgage and a variety of things, so definitely talk to a tax professional, talk to a mortgage professional, and if you need a referral to either one of those, don’t hesitate to reach out to us. We can help you get in touch with somebody who knows exactly what you need to do to make sure that you’re writing off as much as you can as a homeowner. That is a big benefit to homeownership so take full advantage of writing off the interest on your mortgage.
Now, these are just a few simple ways to make sure that you win next tax season and how you define winning may be different. You know, some people love to get a big tax refund. Some folks want to have an absolute zero, no refund, but they don’t owe anything. The definition of winning is up to you. So do what’s best. Talk to a professional, look at your income, look at the amount of deductions that you have, and really analyze how you did this year in order to set yourself up for success in the next tax season.
If you have any questions or you need assistance and buying your first home so you can write off the interest on that mortgage payment. Reach out to us. We’d love to help you. We’d love to draw up a plan to help you get from where you’re at, to where you truly want to be. So the best way to get started with us is to text the word START to (619) 848-3700, or you can visit our website at homeownerprep.com/start and there you can get started with Homeowner Prep to start putting a plan together to help you buy that first home.
I hope you got some great insight from today’s episode. Again, be sure to talk to a tax professional, but I hope this information will help you win in the next tax season. I look forward to providing you with some more great info on the next episode, and until then, be blessed.
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