Financial health isn’t something I talk about a lot on this blog, but it is very much related to physical health and I want to talk about it for a minute. We have gotten through the Christmas season and are starting not only a new year, but a new decade. On that subject, our taxes for last year still need to be paid – this is very scary for a whole lot of people. I want to try and eliminate some of your worries.

I know the tax form can be very intimidating, but there really isn’t anything to be scared of when you know how to calculate income tax. One way to take some of the mystery and fear out of taxes is to estimate your taxes and tax refund before you even start doing them or going to your accountant.

When you want to figure out your taxes the first thing to do is add up how much money you made. Just take all the statements you got from your employer, bank, and other places that paid you and add them up. Next you have to determine your deductions like charity and mortgage interest. Subtract your deductions from your total income to come up with your taxable income. From there you look up your tax on a tax table. Subtract any credits, like for children, from your tax and add any penalties to get your final tax. With any luck, you will have paid in more than you owe and the government will be sending you a big fat refund check.

Now that wasn’t so hard was it. Try not to get stressed about your finances becase that will hurt your physical health. When it is time to do your taxes, you may want to check out some of the great online income tax software programs available. They are way cheaper than going to a tax professional.

Posted in Finance ~ No Comments