Be Proactive with Tax Planning

In this week’s show, it’s all about taxes! You’ll learn how our federal tax system works, the difference between someone’s “top tax bracket” and what their marginal tax bracket is, and the different types of taxes that you’re obligated to pay based off the income that you earn. I’ll also share with you different planning strategies to consider whether you found yourself getting a refund or having to pay. From there, I’ll explain the difference between underpayment, late filing, and late payment penalties and which one you absolutely want to avoid. And finally, for those of you that find yourself in the situation of having to make a payment, I’ll discuss a practical way to proactively plan for those payments throughout the year so that you’re not surprised and scrambling for cash come tax day.   Links 12 Things to do with your refund Avoiding 1099 Hell Underpayment Penalty Late filing & payment penalties Form 1040 Estimated Tax Payment Schedule —————————————————————————————————— Please rate and subscribe to 20/20 Money on these platforms Apple Podcasts Spotify Google Play Stitcher  —————————————————————————————————— For past episodes of 20/20 Money with full companion show notes, please check out our episode archive here!