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We Did Our Taxes And It Was A Nightmare

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Taxes

Every year, I dread doing our taxes. For a number of reasons, this year I wasn’t able to submit all of our paperwork until the day before they were due. I was stressed to the max and I knew that we’d owe (probably more than we have in previous years). I was right.

Filing Taxes This Year

The biggest difference with filing our taxes this year is that my husband had a notable income. In previous years, he was either out of work or working a low-paying mechanic job ($250-$400 per week). Then he got into freelancing, but that doesn’t always bring in reliable income either. So, for the most part, we lived on what I made.

About a year ago, he was hired on by a multi-national company to write content for car manufacturers like GM, Buick, Ford, Chevy, etc. He’s been doing a fantastic job and it made our finances way easier to manage. We haven’t felt the crunch of living paycheck to paycheck as we did before. However, the increased income had a significant impact on where we landed in the tax brackets.

I work on a 1099 and taxes aren’t taken out. He’s a W2 employee and has taxes taken out, plus all of our health insurance costs. Despite this, we wound up owing about $15K this year in taxes (state and federal combined). We have a portion of this and can make a partial payment, but we will need to set up a payment plan with the IRS to pay off the rest. Thankfully, that’s an option for us.

But what a nightmare! I was expecting to owe, but certainly not this much. My annual earnings actually went down last year, but our household income increased and tax laws changed.

So, now our number one goal is to find a way to start paying this off – and fast. No one wants to be in debt with the IRS – it’s nerve wracking.

Our Plans Moving Forward

We are going to do a few things to get this off our plate quicker and ensure it doesn’t happen again. First, we are going to take an aggressive approach to paying it off. We plan to pay about $500/month towards the debt with the IRS. That’s simply what we can afford right now after clearing out what we had set aside for taxes already ($5,000).

For next year, we plan to try and set aside more money to have for when we file. We are also planning on hiring someone next year so that it’s not so stressful on me (I was in tears doing taxes on Monday). Having a certified professional do them may also help us find additional deductions that we aren’t currently claiming.

Have any of you experienced being in debt with the IRS? I’d love to hear about your experiences and how you got through it.

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4 Tips for Recovering Your Finances After a Car Accident

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Getting into a car accident is something that literally no driver wants to go through. Regardless, it’s impossible to predict accidents and therefore avoid them completely. That’s because while you may do your best to drive safely, you can’t control other drivers on the road. So, what’s the next step after you get involved in an accident? Recovery in terms of physical health and finances is what typically follows. Have a look below to see four tips that can help you recover your finances and stay on top of money management after getting in a car accident.

1. Talk to a Lawyer

The best thing that you can do is to talk to a car accident lawyer as soon as possible. One with experience can tell you some ways in which to make savings and get the most out of a new money management system you come up with. They’ll also tell you about any actions you need to take so they can save you time as a result. They’ll let you know details of the law such as that you have up to three years to file a claim after getting into a motorcycle accident in most cases. Such information may prove beneficial to you as it will help you determine the best way to proceed.

2. Change Your Lifestyle

Another tip that can help improve your money management after getting in a car accident is to change your lifestyle. This should involve making adjustments that lead to lower expenses for you at the end of every month. This tip can help you recover your finances after getting into an accident and improve your life for the long term. With the average number of car accidents in the United States every single year standing at six million, you can benefit immensely from being financially responsible both as a form of prevention and aftercare.

3. Leverage Insurance

Next, do your best to get the most from your insurance coverage. Make sure that everything that’s covered by your provider is paid for. This includes hospital expenses and car repairs. Additional costs may be things like lost wages and damages to property or other vehicles if you’re liable to pay for these. As long as your car accident didn’t involve a fatality, you may find it easier to get the financial assistance you need from your insurance provider. On this note, almost 1.25 million people lose their lives in car crashes annually, according to thewanderingrv.

4. Renegotiate Any Loans You May Have

Finally, if you have any loans, approach the institutions you owe to renegotiate the terms. With better terms, you may be able to have a more comfortable financial load to deal with at the end of every month. With good money management, this is a tip that can also help you pay off your loan faster and make some savings in the form of lowered interest rates. It may be worth hiring a good financial planner to help you navigate the process. Soon enough, you may be able to make this a habit and enjoy the benefits for the rest of your life.

Use these tips to help you recover your finances after you get involved in a car accident. They can help you improve your life in ways that you didn’t think were possible. You may recover and actually improve your finances, ending up with a better lifestyle than you lived before. You can also set up a savings account for any car expenses you may incur in the future. This will make it even easier for you to handle a similar issue in case it comes up again.