Tax Tips for 20 Somethings

I can't say that college taught me how everything in the real world works.  Hence, tax season.  I had no idea I would end up paying the government thousands of dollars that I could be spending otherwise.  And, this is not to say that I don't agree with what the government does with the money.  I think programs such as planned parenthood and the Affordable Care Act are brilliant!  However,  there are ways around paying such a large percentage of my check into the government.  Here are some tips to help you as you prepare to say goodbye to a lump sum of money that you didn't know you'd miss so much until tax season. 

1. Start a home based business!  Save every receipt from your expenditures.  Write them off on your taxes.  This business can be a Mary Kay Consultant, join a network marketing group or something.  Hmmm.... Why didn't I think of this my first year out of college?  After all, I did come from an entrepreneurial family.  Literally, everyone works for themselves. 

2.  Start planning for next year!  Pull out those nifty excel skills that you did learn in college and start budgeting where you will put your money so that you can know exactly how to calculate expenditures for your home and you home based business/ work related activities. 

3. There is a tax credit that our fabulous President Obama put in place for us a few years ago if you are in school.  Undergraduates, this helps you the most!  

4. Understand your tax bracket!  This one is huge!  Some states pay different taxes on top of the percentage of taxes that we pay to the federal government based off of our incomes.  

That is all for now, and this is plenty for you to work on.  Trust me.  Let these small tips help you keep some money in your pocket! 

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