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Get Rid Of Tax Debt In A Way Most People Don’t Know

Get Rid Of Tax Debt In A Way Most People Don’t Know

While the

global economy continues to showcase signs of considerable growth and diversification, personal debt remains a huge issue in developed countries throughout the world. This is a key legacy of the Great Recession, during which time numerous citizens defaulted on their financial agreements and triggered additional, interest-related debt. Tax debt is another key consideration for citizens in the modern age, especially when you consider the rising number of freelancers, independent contractors and part-time financial traders who are active in 2014. This demographic is ultimately responsible for conducting its own tax assessments and calculating repayments, and many have found themselves impacted by a fundamental lack of knowledge and awareness. coins_refund

    It is important that you look to reduce your tax debt quickly, while also keeping a level head and avoiding such issues in the future. Consider the following steps towards achieving these goals.

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    1. Understand the nature of your debt and identify key resources.

    Before you can start to diminish your tax debt, it is first important to understand its nature. Just as there are multiple tax laws and codes, so too there are several different types of debt and methods of potential repayment. Understanding the full extent and structure of your debt is crucial, as from there you can determine the best and most expeditious resolution. If you are looking for a place to start, consider contacting your country’s revenue and customs regulatory body or an independent website for more impartial advice.

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    2. Create a clearly defined plan of action.

    Once you have researched your debt liability and all viable resolutions, you can begin to create a clearly defined plan of action. This can include one or several points, so long as they are relevant to your debt and help you to move towards a resolution. It is crucial that your plan includes maintaining open lines of communication with the governing tax authority, as this enables you to discuss your options and agree on an amicable solution. Whether this involves making estimated quarterly repayments while your case is being investigated further, requesting a payment extension or scheduling installments, you will at least be able to create a foundation from which your tax debt can be diminished.

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    3. Ensure that your plan is practical and manageable over Time

    Once you have established a plan that is agreeable with the governing tax authorities, the next step is to ensure that this is manageable over time. Execution is critical, as even the most detailed and proactive plan of repayment is meaningless unless it can be sustained. So even if you have managed to negotiate an amicable installment plan to settle your tax debt, for example, you must carefully analyze your income and existing repayments to ensure that this is viable. The same principle applies if you commit to making estimated quarterly repayments, while anyone who requests an extension must guarantee that they can meet the full cost of their debt and any affiliated interest within the specified time frame.

    4. Seek help from a tax debt professional before executing your plan.

    When dealing with a governing tax body such as the IRS or HMRC, it is absolutely imperative that you deal in precise fact and meet deadlines without fail. Even though authorities such as the IRS remain flexible and are willing to allow payment extensions of up-to 120 days, for example, the failure to repay within this time frame will be met with a far more serious response. Given the need to comply with tax legislation and ensure that you make repayments according to exact terms of your agreement, it may be worth seeking advice from a tax debt professional before your finalize and execute your plan. While this may require an initial investment, it will potentially help you to reduce the cost of your repayments and make longer-term tax savings.

    5. Learn from previous mistakes and change your behavior for the future.

    On this note, it is also important that you look to learn from your mistakes and ensure that you do not incur future tax liability. Acquiring knowledge is key, so you should also look to review individual income streams and how your earnings are structured in relation to tax. If you are someone who looks to boost your income though financial trading and speculation, for example, you may want to consider considering investing in derivatives that are free from capital gains tax. In the UK and similar European countries, any earnings generated through activities such as currency trading are ineligible for taxation, as these practices are categorized as informed gambling. So long as this is not your sole or primary source of income and you are able to access a real-time price chart while trading, it is therefore possible to maximize your earnings without falling foul of tax legislation.

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    Published on July 4, 2018

    Top 10 Recommendations on Money Management Apps

    Top 10 Recommendations on Money Management Apps

    Don’t want to overspend your budget, swipe your credit card too many times, and feel like a financial mess? Instead of beating yourself up for the bad financial decisions you’ve ever made, create a new plan!

    The solution is simple, save more and spend less. But, we all know it’s easier said than done.

    One problem is finding quality apps that save you time and money, and aren’t just hype.

    Luckily, there’re many great money management apps available at your fingertips. Here are 10 reliable money management apps that can help you save money, and crush debt.

    1. Personal Capital

      When was the last time you’ve tracked your net worth? Probably months ago or maybe never. Personal Capital allows you to easily track your net worth and plan for retirement.

      Here are some of its main features:

      • Sync many investment accounts, and expenses (mortgage, credit cards, etc.) in one place
      • Discover hidden fees and how much they’re affecting your retirement plan
      • Wealth management for investors requiring a long-term strategy

      With Personal you’re free to track your expenses and net worth.

      Available for: iOS and Android

      2. Mint

        If your smartphone could only install a few apps, Mint would be one of them. Why? Because Mint tracks all your balances and bills in one place.

        Here are some of its main features:

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        • Effortlessly track all your bills and balances in one dashboard
        • Categorized expenses to understand where you spend your money
        • Uncover hidden fees, and determine your investment style with sophisticated retirement tools.

        Feel at ease with managing your money by a reputable company that isn’t going anywhere.

        Available for: iOS and Android

        3. YNAB

          Everyone needs a budget, there’s no way around it. YNAB (You Need A Budget) is an easy to use app that will change the way you think about money. Their motto is to “give every dollar a job”, and you’ll quickly discover why.

          Here are some of its main features:

          • Easily sync all bank accounts in one place
          • Visually see your debt paying progress with eye-catching charts and notifications
          • Customized categories setting saving goals

          The best part about YNAB is the community that comes along with it. You can hop on the YNAB forum to receive support, listen to the YNAB Podcast or stay tuned for their weekly videos.

          Available for: iOS and Android

          4. Wealthfront

            Albert Einstein once said “compound interest is the eight wonder in the world”, and for a very good reason. The problem is, most people are scared or unwilling to learn the basics of investing. This is why Wealthfront is the perfect solution for the hands-off investors.

            Here are some of its main features:

            • Variety of investment account options including IRA, Roth IRA, and more
            • Your portfolio composed of 7 different asset classes
            • Automatically rebalanced portfolio
            • Daily tax loss harvesting

            Wealthfront is perfect for people requiring investment guidance, or prefer a hands-off solution.

            Available for: iOS and Android

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            5. Clarity Money

              If you’re staying on top of your budget but want to take your finances to the next level, Clarity Money can help you. Clarity Money helps you stay under budget and build a personalized savings plan.

              Here are some of its main features:

              • Easily cancel subscriptions with one click
              • Synchronize bank accounts fast
              • Transfer money effortlessly between different accounts

              Clarity Money isn’t an app that does it all. But, it does make transferring money and canceling subscriptions fast and efficient.

              Available for: iOS and Android

              6. Acorns

                What if there was a way to quickly gain confidence in investing your money, without too much risk? There is, and Acorns is your solution. With Acorns’s technology, you’re able to make investments as small as $5.

                Here are some of its main features:

                • Automatic contribution option
                • Customized portfolio tailored to your needs
                • Low management fees ranging from $1-$2 per month

                Stop wasting dollars on expensive coffee. Instead, invest them towards a brighter financial future.

                Available for: iOS and Android

                7. Albert

                  Do you budget by only subtracting your expenses from your income? If so, how would you discover any overpayments or extra money you could save? This is where Albert shines, and it does it all free.

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                  Here are some of its main features:

                  • Receive notifications for overpayments, hidden fees, and low balances
                  • An Automatic budget that’s built around your spending and income
                  • Easily track debt and set new financial goals

                  While Albert does offer a paid option, most of its core features are FREE. So, what better option to save?

                  Available for: iOS

                  8. Prism

                    Have you recently forgot to pay a bill because life got in the way? Prism automatically tracks your bills and syncs your bank accounts in one place.

                    Here are some of its main features:

                    • View all your account balances in one glance
                    • Bill due dates are automatically pulled and tracked
                    • Receive early reminders for upcoming bills

                    If your budget is on “fleek” but can’t seem to stay on top of your bills, Prism is your go-to app.

                    Available for: iOS, Android, Windows, Amazon

                    9. Mvelopes

                      Remember hearing about people using envelopes to budget their money? Well, Mvelopes is the new envelope system for this generation. Easily create monthly budgets and track your saving goals.

                      Here are some of its main features:

                      • Connect unlimited bank accounts
                      • Real-time budgeting with auto transaction syncing
                      • Low monthly $4 fee or $40 annual

                      Mvelopes can help you crush debt, save more, and help you stop overspending. With its low monthly fee, it’s worth a try.

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                      Available for: iOS and Android

                      10. Wallaby

                        Most people don’t have time to track their credit card’s changing rewards and interest rates. Because of this, you need help reaping the most of your credit card’s rewards. Wallaby is the app that will help you do just that.

                        Here are some of its main features:

                        • Automatic recommendations for the best credit card to use for each transaction
                        • A friendly user interface, displaying credit cards with their corresponding images
                        • Free to use

                        If you’re using the same credit card to make your purchases, you may be leaving money on the table. Give Wallaby a try if you’re ready to maximize your credit card’s rewards.

                        Available for: iOS and Android

                        Take control of your finances and experience financial freedom

                        Picture yourself staying on budget and saving more money than you’d ever imagined.

                        It took hard work and dedication but you’d finally learned how to manage your money. You have to start taking control of your spending and saving habits.

                        You now have a list of reliable apps that can help you build better money habits, what are you waiting for?

                        Featured photo credit: Pexels via pexels.com

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