Tax Mistakes & Budget Tips!

Tax Mistakes & Budget Tips!

Tax Mistakes & Budget Tips!

Oh the joy of being in the midst of tax season. Have you filed yet? In the office, our attorneys see and hear about many different mistakes that people make in regards to their taxes. Here are some of the most common mistakes that we see people making.

  • Deciding not to file because you know that you are going to owe. This causes problems, particularly when you try to file for bankruptcy.
  • Filing separately from your spouse and labeling yourself as “single” instead of “married filing separately”. This is a major problem with the trustees because when they see this, they have to report it to the IRS and it can be blowback on them.
  • Being self-employed and not putting enough money aside to pay off taxes, so when taxes come around you are stuck with a HUGE tax debt that you can’t pay off.

Did you know…

  • That the IRS can automatically garnish you without getting a judgment against you?
  • Bankruptcy can only discharge certain tax debts?
  • Unlike with other garnishments, if the IRS garnishes you, we cannot get that money back for you.
  • If you have a huge amount of tax debt, a Chapter 13 could place you in a repayment plan to pay back what you owe without being garnished, as well as get rid of unsecured debt.

6 Tips For Making A Budget

  1. Gather every financial statement you have.
  2. Record all your sources of income.
  3. Create a list of monthly expenses.
  4. Break expenses down into two categories: fixed and variable.
  5. Total your monthly income and your monthly expenses.
  6. Make adjustments to expenses.

Need some help to start fresh? Give us a call at 757-276-6555 to schedule your appointment.

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