Financbase

Tax Tip: Have you considered using your HSA as a long-term investment tool instead of just for medical expenses?

Health Savings Accounts (HSAs) are a triple tax advantage: you contribute pre-tax dollars, they grow tax-free, and you don’t pay taxes when you use the money for medical expenses. But here’s the thing—you don’t have to spend your HSA contributions right away. Let that money grow tax-free until retirement, and it can be an extra retirement fund with tax benefits! Contributions to your HSA are deductible even if you don’t spend the money in the same year.

Tax Tip: If you’re paying for professional advice or using a robo-advisor to manage your investments, you might be able to deduct some of those fees on your taxes. Investment management fees for taxable accounts can be deductible if they exceed 2% of your adjusted gross income (AGI). This deduction might be limited, but it’s worth looking into if you’re spending on professional help!

Got investments that didn’t perform well this year? You can actually use those losses to your advantage! Tax-loss harvesting allows you to sell investments that have lost value and offset the losses against any gains you made elsewhere. This can reduce your taxable income and even carry forward to future years if your losses exceed your gains. Just make sure you don’t repurchase the same investment within 30 days to avoid the ‘wash sale’ rule.

How to set Financial Goals that stick! Having clear goals makes it easier to stay on track. Here’s how you can work on setting them up:

1. Be specific—don’t just say ‘I want to save money.’ Say, ‘I want to save $1,000 in 6 months.’

2. Make them measurable—track your progress every month.

3. Break big goals into smaller, actionable steps.

4. Reward yourself when you hit your milestones (but not with something that blows your budget!).

Think you need a lot of money to start investing? Think again! Here’s how to start with just $100:

1. Open an investment account (Robo-advisors like Acorns or Betterment are great for beginners).

2. Choose a low-cost index fund or ETF that spreads your money across lots of stocks.

3. Set up automatic monthly contributions, even if it’s a small amount.

4. Let compound interest work its magic—your money will grow over time without much effort!

An emergency fund is your financial safety net! Here’s how to get started with just $500:

1. Set a savings goal of $500 as your starting point.

2. Automate a small weekly transfer to your savings account—even $10 a week adds up.

3. Cut one or two non-essential expenses (like takeout or subscriptions) and put that money into savings.

4. Celebrate when you hit your goal, and then aim for 3-6 months of living expenses!

Want to know how to start investing in stocks? A good rule or method to follow is looking around your home or even in your fridge and seeing what products you normally purchase. After taking notice of the brands you tend to buy look into their respective Stock ticker and invest into those specific stocks. Look into which stocks pay out quarterly dividends and look at how much stock would you have to purchase in order to get a return on those every day expenses.

Use free financial literacy apps like Credit Karma, YNAB (You Need a Budget), or RocketMoney to track your expenses and manage your money. These tools are user-friendly and help you stay on top of your finances. As well as some offer Savings accounts that can help you move 10-20% of your income every paycheck towards paying down debt or for a future big purchase.

Compound interest when charged by lenders was once regarded as the worst kind of usury and was severely condemned by Roman law and the common laws of many other countries. But what is it?

Compound interest is like earning money on your money and then earning even more money on that money.

Imagine you have $100, and you put it in a piggy bank. Let’s say the piggy bank gives you $10 every year as a bonus for keeping your money there. That’s interest.

Now, with compound interest, instead of only getting $10 every year, you start earning interest on both your original $100 and the interest you already earned. So, in the first year, you get $10, making it $110. But in the second year, you get interest not just on $100, but on $110! So you earn a little more, and it keeps growing faster.

It’s like a snowball rolling down a hill—it gets bigger and bigger as it goes! That’s the magic of compound interest.

"He who understands it earns it; he who doesn't pays it." - Albert Einstein

An emergency fund is crucial to financial security. Aim to have at least 3-6 months’ worth of living expenses set aside for unexpected situations like medical emergencies, car repairs, or job loss.

Take a hard look at your spending habits and cut out those non-essentials. Subscription services, eating out, and impulse shopping sprees might be secretly bleeding your bank account dry, but tiny changes can add up to substantial savings over time.

We did away with one cable bill and gained 10+ subscription services? How? 🤨

Want financial peace of mind? Start by tracking where your dollars are disappearing to, then make a budget and try to stick to it. Don't forget, keeping what you earn is just as important as earning it.

Be prepared this tax season!

👨‍👩‍👧‍👦 Parental Tax Mastery! 📚💼

Parents, gear up for a tax season that maximizes your family's benefits. Here's your guide:

1️⃣ **Child Tax Credit Check:**
Ensure you're claiming the Child Tax Credit. It's now extended with increased benefits—make the most of it!

2️⃣ **Childcare Expenses:**
If you pay for childcare, explore the Child and Dependent Care Credit. It's a potential tax break for working parents.

3️⃣ **Education Savings:**
Review 529 Plan contributions for potential state tax deductions. Investing in your child's education could mean tax advantages.

4️⃣ **Health Savings for the Family:**
Maximize contributions to Health Savings Accounts (HSAs) for family medical expenses. It's a tax-smart move.

5️⃣ **College Credits:**
If your child is in college, explore education credits like the American Opportunity Credit for potential tax relief.

Ready to navigate tax season like a parenting pro? Stay tuned for more tips to ensure your family's financial success!

🌟 Master Your Tax Season Prep! 📑💼

Gear up for a successful tax season with these proactive steps:

1️⃣ **Create a Tax Folder:**
Start a dedicated folder for all tax-related documents. Staying organized now sets the stage for stress-free filing later.

2️⃣ **Review Financial Goals:**
Reflect on your financial goals and how your tax strategy aligns. Are there adjustments needed to stay on track?

3️⃣ **Track Crypto Transactions:**
If you dabble in cryptocurrency, keep a detailed record of transactions. Cryptocurrency gains are taxable!

4️⃣ **Evaluate Health Savings Accounts (HSA):**
Explore contributions to your HSA for potential tax benefits. It's a smart way to save for medical expenses.

5️⃣ **Schedule a Tax Planning Session:**
Consider consulting a tax professional for personalized advice. A proactive approach can uncover additional savings.

Ready to take charge of your financial journey? 🚀 Stay tuned for more insights and tips to make this tax season a triumph! 💪💵

📆 Countdown to Tax Success! 🚀

With tax season around the corner, it's time to kickstart your preparations for a financially savvy 2023. Here's your guide to get ready:

1️⃣ **Update Personal Information:**
Ensure your personal details are current. Changes in address, marital status, or dependents? Update them!

2️⃣ **Explore Deductions:**
Familiarize yourself with available deductions. From home office expenses to charitable contributions, every detail matters.

3️⃣ **Verify Tax Withholdings:**
Check your paycheck withholdings. Adjustments might be needed to avoid surprises come tax time.

4️⃣ **Utilize Retirement Contributions:**
Contribute to retirement accounts for potential tax savings. It's an investment in your future and a smart tax move.

5️⃣ **Stay Informed on Tax Law Changes:**
Be aware of any changes in tax laws for 2023. Knowledge is power when it comes to navigating the tax landscape.

Ready to turn tax season into a financial win? 🏆 Stay tuned for more tips to ensure a seamless and rewarding filing experience! 💰✨

📢 Get Ahead for Tax Season 2023! 📊

As we gear up for the upcoming tax season, it's time to ensure a smooth and stress-free filing process. Here's a quick checklist to prepare:

1️⃣ **Organize Documents:**
Gather W-2s, 1099s, and any other income-related documents. A well-organized file makes filing a breeze!

2️⃣ **Check Eligibility for Credits:**
Stay informed about new tax credits for 2023. Are you eligible? Find out and maximize your refunds!

3️⃣ **Review Deductible Expenses:**
Take note of deductible expenses. Did anything change this year? Stay updated for potential savings.

4️⃣ **Explore e-Filing Options:**
Consider e-filing for a faster and more efficient process. It's secure and gets your refund quicker.

5️⃣ **Plan for Future Tax Savings:**
Think beyond this year! Strategize to make the most of your financial decisions for future tax benefits.

Ready to conquer tax season? 🚀 Stay tuned for more tips and updates to make this tax season your smoothest one yet!

Having a tax preparer can provide several benefits, including:

Expertise: A tax preparer has the knowledge and experience to accurately prepare and file your tax return. They are up-to-date on the latest tax laws and regulations and can ensure that you take advantage of all available deductions and credits.

Time-saving: Preparing your taxes can be time-consuming and complex, especially if you have a complex financial situation. A tax preparer can handle the process for you, saving you time and effort.

Accuracy: A tax preparer can help you avoid errors on your tax return, which can lead to costly fines and penalties. They can also help you avoid missed opportunities for deductions and credits.

Peace of mind: Having a tax preparer on your side can give you peace of mind knowing that your taxes are being handled correctly and efficiently.

Professional representation: If you are audited by the IRS, a tax preparer can represent you and negotiate on your behalf. They can also provide guidance and support during the audit process.

Tax planning: A tax preparer can provide you with tax planning services, helping you make strategic decisions throughout the year to minimize your tax liability.

Convenience: A tax preparer can provide a convenient and efficient way to file your taxes, especially for those who are busy or have limited knowledge of tax laws.

Overall, having a tax preparer can provide valuable expertise, time-saving, accuracy, peace of mind, professional representation, tax planning, and convenience.