Taxes are your number one or number two expense typically. Whether you realized this before or not…it is true. Hate paying so much for rent? Taxes are a large reason why you pay high rent. Sometimes over 20% of your rent is going toward paying the property tax for the landlord. Insurance is another large ticket item that costs the landlord money. If it costs the landlord money, it costs the tenant money.
If you own a home, the same rule applies. The difference is that landlords get to write off expenses and most home owners cannot. Gas has fixed taxes which increase and decrease percentage wise based on how much the fuel costs on any given day.
Almost everything you buy with cash has been taxed...sometimes multiple times like cars. Any items you buy have corporate taxes that are imbedded in the products being sold.
Something that I am surprised is the lack of knowledge on taxes. Too much noise exists when it could be really simple. One quick tips has been written talking about this great benefit to military personal.
Basically it has to do with saving receipts. Many people live in states that do not have income tax. If you are someone who itemizes their tax return you can take either income tax, or general sales tax off on your Schedule A itemization.
Being organized helps in other areas as well such as budgeting, coming up with a savings or investment plan…and finally a finance plan with forecasts on how to become a military millionaire.
For me...a penny saved is a penny that isn’t taxed.
Remember you have 3 years typically to get some more money if you or someone missed a deduction on your taxes. Corporations make changes to their financial statements all the time. This is normal. It is always good to take a look and see if you missed something. It has happened to me. The good news is that if you do miss something and IRS cuts you a check...sometimes you get interest on top of it.
If you have questions or need help? Comment on your problem, and I’ll take a look.