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Browsing posts in: Money & Relationships

How’s the Part Time Job Going?

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Back in December, I was hired on at a local fast food restaurant as their Catering Coordinator. But after I was offered the position, it kind of stagnated. I was actually kind of grateful as I was worried that it would take away from my time with the kids over the holidays. So while I could have used the income, I appreciated the time with the kids.

January 2nd, I had my orientation with the owner and store manager. And a week later, I had my training with the Director of Sales. And then I hit the ground running. They just kind of let me lose to figure it out. Not complaining at all. This was a role for them and it immediately felt like a perfect fit for me.

I am loving it. However, the income is not really worth mentioning. Yes, I know every bit counts. To date of this publication, I have worked a little over 16 hours and made about $150. They are also reimbursing me for my mileage when I take catering deliveries but I am not counting that as income.

Growing the Position

I get to make my own schedule based on catering orders. Work with a fantastic group of adults and teens. And really enjoy the work. It’s really the perfect “add-on” job. I do a lot of planning, prepare what I can in advance, and when I am available (which is currently always) work in store helping when they are busy or delivering catering orders.

As hard as losing my part time job was, I am so grateful to have this opportunity. Who knew that returning to where I first started working would be so fulfilling!

Because this is a new role, the management team has been really open to my suggestions on how I want to operate. And it’s nice to hear “job well done” on a regular basis after such a challenging year with job loss.

(At the time of writing, I preparing to work a big catering event for the Tim Tebow “Night to Shine” event. Super excited!)

 

Tax Time – Arizona Tax Credit

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‘Tis the time of year for thinking about and planning for tax time. As I’m planning to put together our taxes, I’ve prepared by making a tax-credit-eligible donation to my kids’ school.

What’s a tax credit?

Not all states offer tax credits. This is a dollar-for-dollar “credit” toward the money you owe the state in taxes. Compare this to a tax deduction, which lowers the amount you’ll pay in taxes by lowering your taxable income. But due to the way a tax credit works, it’s much more advantageous financially. Imagine if you had a $400 tax credit. It means your state tax liability would be reduced by exactly $400. In comparison, if you had a $400 deduction, it would reduce your taxable income by $400. This would likely have some minimal impact on lowering your taxes, but it would not be as advantageous as a dollar-for-dollar credit.

How do I qualify for a tax credit?

From what I understand, different states offer tax credits for different things. Some offer child tax credits similar to what is offered federally. But at least in Arizona, you can also earn a tax credit by donating to a variety of non-profit organizations, including K-12 schools. I love this option because it means I can directly contribute to my kids’ school and that money is deducted (dollar-for-dollar!) from what I owe in state taxes. There are some rules for how the money must be earmarked and spent. But, in general, the money can be used to benefit extra-curricular opportunities including field trips! My kids’ school often asks parents to invest this way, and it helps the kids have great experiences outside the classroom.

Contribution Limits

It’s important to note that there are contribution limits in place. You can’t just donate thousands of dollars and receive thousands back in refunds for donating over and above your state tax liability. But I love that I can support local organizations (like schools, foster care organizations, and more) and it doesn’t cost me a penny extra. It’s money I would be paying to the state for taxes anyway!

Types of tax credits

The only tax credits my family has historically been able to take advantage of are through our donations to local schools and other charitable organizations. However, Arizona allows a variety of tax credits, including those for small business owners and those who invest in renewable energy. When we bought our house, it already had solar installed on it (we just inherited it). The initial owners, however, were able to claim the investment in solar on their taxes and receive the tax credit for installation. This is an incentive Arizona offers to promote renewable energy sources. Different states likely offer different types of credits, so you’ll have to do a little research to figure out if you have tax credits for which you might qualify.

Final Thoughts

I’m trying to get an early start on taxes this year so it’s not hanging over my head. Although I never really enjoyed the process, I think we’ve gotten pretty good at reducing our tax liability and coming pretty close to breaking even (or receiving a small refund) at the end of the year. This is exactly where I want to be! I used to enjoy receiving BIG refunds when I was a teenager and a young adult. But now I realize that just means I’d been overpaying the government all year long for an interest-free loan! I’d rather just break even and have no refund, which means I’ve been in more control of my money throughout the year. Here’s to hoping this year works out the same! Fingers crossed!

Do you live in a state that offers tax credits?