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You Don’t Have to Worry: Tax Answers from Jeff Schnepper

You Don’t Have to Worry: Tax Answers from Jeff Schnepper

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    No matter how prepared you are for tax season, you probably worry at least a little whenever April 15th is getting close. We’ve covered your last-minute tax options in the past, but no matter how close that deadline is getting, we want to reduce your worry. Jeff Schnepper, MSN’s tax expert, agreed to answer a few questions for us, and offered a little reassurance.

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    Tax Misconceptions — and Problems

    One of the major reasons that our taxes keep us up at night, according to Jeff, is that there are so many myths and misconceptions about taxes: topics like who you can claim as a dependent and what you can take as a deduction involve as many urban legends as a bad horror movie. And it doesn’t stop there. Jeff says: “The most common misconception people have about taxes is that everybody else is cheating and getting away with something….giving them the “right” to fudge. Cheating is wrong and I’ve found that the taxpayers I work with understand, and want to do the right thing. The problem is that the law changes every year, and sometimes three and four times in a single year. The professionals are overwhelmed and the average taxpayer completely lost. It’s not that people are cheating – they’re making errors because they don’t know the rules.”

    The past few months have shown the truth of that statement. If you consider just the appointments that President Obama has made (or attempted to make), it becomes obvious very quickly that even politicians who can afford the best tax preparers in the country can’t get their taxes done correctly.

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    What We Can Do to Reduce the Worry

    Just because the tax system is complicated doesn’t mean that the average taxpayer needs to spend the time between now and April 15th cringing, however. Even the biggest tax bogeyman of them all — an audit by the IRS — isn’t something you should spend too much time worrying about. While you can minimize your overall chances of being audited by following the rules as closely as you can, and by having the right documentation, there’s a certain element of chance.

    “You can’t avoid an audit. Returns are selected randomly as well as based on the IRS DIF computer program,” says Jeff. If there’s nothing left that you can do to make sure that your tax return is filled out accurately, you can stop worrying. If the computer picks your number, you may have to sit down with an auditor, but there’s nothing else you can do to affect the process.

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    A Few Last Minute Options

    Even though you’ll get the best results for preparing your tax return by starting as early as possible, Jeff was able to point out a few last minute deductions that you can pick up after December 31st: “Do you qualify for a deductible IRA or would a Roth be better. Can you contribute to a SEP?” He suggests looking into your IRA options if you’re still searching for deductions.

    Jeff also notes that there are a few extra things to consider this year, if you’ve been affected by the current economic situation. Jeff says, “Sit down with a tax pro if you may lose your house. Congress passed a law that wipes out any taxes on debt discharge income on a principal home. But, you have to do it right and file the appropriate forms.” He also pointed out that if you’ve refinanced your mortgage, you can deduct any points you pay over the life of the refinance. You can even deduct any unamortized points on your original refinance if you refinance a second time.

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    “The laws are in flux and are changing as you read this. For example, now the first $2,400 received in unemployment benefits escapes tax. You can get a $1,000 deduction for real estate taxes even if you take the standard deduction. For 2009, you can deduct sales tax on a new car even if you don’t itemize. If you don’t know the rules, you’re going to have a hard time playing the game,” says Jeff. He makes it clear that if you aren’t staying up to date on the changes in tax laws, you’re going to have a hard figuring out your taxes.

    Getting Ready for Next Year

    You can make your 2009 tax return easier by starting now. The secret to making tax season simple is setting up a system to document both your income and your deductible expenses throughout the year and keep it up to date. Jeff described one system his clients have been known to use: “For substantiation, I have clients who throw all their checks and receipts in a box. Once every month or so they sit down and put those checks and receipts into envelopes with tax classification. So, there’d be an envelope for contributions, investment expenses etc. At the end of the year, they add them up, don’t double count, and put the number outside the envelope. Those are the numbers they give me for their tax returns. And, they never have to fear an audit. An audit can only ask them to substantiate the numbers on the return. They already have the backup available in each envelope!” It doesn’t matter exactly what system you use, though, as long as you have one in place — and you keep it up to date throughout the year.

    If you have a question about your taxes, Jeff Schnepper is MSN.com’s Tax Expert. You can find him at money.msn.com, where he answers questions every day. In addition to his MSN columns, Jeff is the author of How to Pay Zero Taxes, which is now in its 16th edition, as well as several other finance and tax-related books.

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    Last Updated on November 5, 2020

    How to Get out of a Rut: 12 Useful Ways to Get Unstuck

    How to Get out of a Rut: 12 Useful Ways to Get Unstuck

    Have you gotten into a rut before? Or are you in a rut right now?

    You know you’re in a rut when you run out of ideas and inspiration. A rut can manifest as a productivity vacuum and be a reason why you aren’t getting results. Even as you spend more time on your work, you can’t seem to get anything constructive done. Is it possible to learn how to get out of a rut?

    Over time, I have tried and found several methods that are helpful to pull me out of a rut. If you experience ruts too, whether as a working professional, a writer, a blogger, or a student, you will find these useful. Here are 12 of my personal tips to get out of ruts:

    1. Work on Small Tasks

    When you are in a rut, tackle it by starting small. Clear away your smaller tasks that have been piling up. Reply to your emails, organize your documents, declutter your work space, and reply to private messages.

    Whenever I finish doing that, I generate positive momentum, which I bring forward to my work.

    If you have a large long-term goal you can’t wait to get started on, break it down into smaller objectives first. This will help each piece feel manageable and help you feel like you’re moving closer to your goal.

    You can learn more about goals vs objectives here.

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    2. Take a Break From Your Work Desk

    When you want to learn how to get out of a rut, get yourself away from your desk and go take a walk. Go to the bathroom, walk around the office, or go out and get a snack. According to research, your productivity is best when you work for 50 minutes to an hour and then take a 15-20 minute break[1].

    Your mind may be too bogged down and will need some airing. By walking away from your computer, you may create extra space for new ideas that were hiding behind high stress levels.

    3. Upgrade Yourself

    Take the down time to upgrade your knowledge and skills. Go to a seminar, read up on a subject of interest, or start learning a new language. Or any of the 42 ways here to improve yourself.

    The modern computer uses different typefaces because Steve Jobs dropped in on a calligraphy class back in college[2]. How’s that for inspiration?

    4. Talk to a Friend

    Talk to someone and get your mind off work for a while. Relying on a support system is a great way to work on self-care when you’re learning how to get out of a rut.

    Talk about anything, from casual chatting to a deep conversation about something you really care about. You will be surprised at how the short encounter can be rejuvenating in its own way.

    5. Forget About Trying to Be Perfect

    If you are in a rut, the last thing you want to do is step on your own toes with perfectionist tendencies. Perfectionism can lead you to fear failure, which can ultimate hinder you even more if you’re trying to find motivation to work on something new.

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    If you allow your perfectionism to fade, soon, a little trickle of inspiration will come, and then it’ll build up with more trickles. Before you know it, you have a whole stream of ideas.

    Learn more about How Not to Let Perfectionism Secretly Screw You Up.

    6. Paint a Vision to Work Towards

    If you are continuously getting in a rut with your work, maybe there’s no vision inspiring you to move forward.

    Think about why you are doing this, and what you are doing it for. What is the ultimate goal or vision you have for your life?

    Make it as vivid as possible. Make sure it’s a vision that inspires you and use that to trigger you to action. You can use the power of visualization or even create a vision board if you like to have something to physically remind you of your goals.

    7. Read a Book (or Blog)

    The things we read are like food for our brain. If you are out of ideas, it’s time to feed your brain with great material.

    Here’s a list of 40 books you can start off with. You can also stock your browser with only the feeds of high quality blogs and follow writers who inspire and motivate you. Find something that interests you and start reading.

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    8. Have a Quick Nap

    If you are at home, take a quick nap for about 20-30 minutes. This clears up your mind and gives you a quick boost. Nothing quite like starting off on a fresh start after catching up on sleep[3].

    Try a nap if you want to get out of a rut

      One Harvard study found that “whether they took long naps or short naps, participants showed significant improvement on three of the four tests in the study’s cognitive-assessment battery”[4].

      9. Remember Why You Are Doing This

      Sometimes we lose sight of why we do what we do, and after a while we become jaded. A quick refresher on why you even started on this project will help.

      What were you thinking when you thought of doing this? Retrace your thoughts back to that moment. Recall your inspiration, and perhaps even journal about it to make it feel more tangible.

      10. Find Some Competition

      When we are learning how to get out of a rut, there’s nothing quite like healthy competition to spur us forward. If you are out of ideas, then check up on what people are doing in your space.

      Colleagues at work, competitors in the industry, competitors’ products and websites, and networking conventions can all inspire you to get a move on. However, don’t let this throw you back into your perfectionist tendencies or low self-esteem.

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      11. Go Exercise

      Since you are not making headway at work, you might as well spend the time getting into shape and increasing dopamine levels. Sometimes we work so much that we neglect our health and fitness. Go jog, swim, cycle, or whatever type of exercise helps you start to feel better.

      As you improve your physical health, your mental health will improve, too. The different facets of ourselves are all interlinked.

      If you need ideas for a quick workout, check out the video below:

      12. Take a Few Vacation Days

      If you are stuck in a rut, it’s usually a sign that you have been working too long and too hard. It’s time to get a break.

      Beyond the quick tips above, arrange one or two days to take off from work. Don’t check your (work) emails or do anything work-related. Relax, do your favorite activities, and spend time with family members. You will return to your work recharged and ready to start.

      Contrary to popular belief, the world will not end from taking a break from your work. In fact, you will be much more ready to make an impact after proper rest.

      More Tips to Help You Get out of a Rut

      Featured photo credit: Ashkan Forouzani via unsplash.com

      Reference

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