April 15th is "Tax Day" and the official deadline for filing tax returns (or requesting an extension) in the United States and Philippines. April 15th also happens to be the birthday of Leonardo da Vinci, who once said:
"I have been impressed with the urgency of doing. Knowing is not enough; we must apply. Being willing is not enough; we must do."
Of course, the more you do, the more money you earn, and the more taxes you must pay. 😀 LOL.
Abraham Lincoln, who also died on this day (April 15th), once said: "You cannot escape the responsibility of tomorrow by evading it today."
I pay more in taxes now than I used to make in a year. That was quite the turnaround for me, no doubt. I'm not one of those people who had an easy time and just breezed through life effortlessly. I don't mind to admit that I've stood in line at a Food Bank before, or that I had to use programs such as food stamps and WIC at times when my children were little. I worked incredibly hard to turn my life around.
I happily pay my taxes, by the way.
To me, paying my taxes is a point of gratitude. It's a way of giving back, "being on the other end" if you will. And so it also means that I achieved my financial goals from so long ago, and that I'm doing well now. And for all of that, I am grateful. Not to myself for having made it happen (but yes, a big thank you to the young and unsure 20-something me!), but for living in a time and space where the opportunity was freely available - many thanks to technology.
I'll make two confessions though...
Yes, I am meant to pay my taxes quarterly. I currently do not, and I pay a decent penalty for that. By choice. Recently I was preparing to file my taxes for the 2012 year, and I had not yet entered the first transaction into my accounting program. Someone said to me, "Wouldn't it be easier to keep it updated monthly?" To which I laughed and replied, "Gosh no! Do you really think I want to do this 12 times a year? It's bad enough doing it once!" Ha 😛
Second confession: I really miss my simple life sometimes, when things were less complicated and when I wasn't dealing with such big numbers. That may seem like a silly thing to say, but the dramatic positive changes to my lifestyle have also come with (much) greater responsibilities.
For many years I intentionally kept myself in a lower tax bracket, and maintained that simpler (easier!) lifestyle. Back then I actually did keep close tabs on my books. In fact, I could pull up a year-to-date total *to the penny, even* within five minutes at any given time. I had to limit how much I worked - or rather, how much I earned - and I kept that going for quite a few years. Yes, on purpose.
Not everyone wants to be a millionaire. Not everyone wants the responsibility that comes with that kind of lifestyle. Some people just want to be happy - to eat, drink, laugh and enjoy life. That doesn't require making millions, of course.
To each their own, right? I know several people who have downsized recently for that very reason. Carrie Wilkerson is one that comes to mind, and she's talked openly about the reasons they chose to do that. It all boils down to lifestyle choices.
Money is a touchy subject.
The old saying "this too shall pass" is the poor man's greatest hope, and the rich man's greatest fear. With Tax Day pulling a close second! lol 😉
Happy Tax Day!
Best,
p.s. Wouldn't it be nice if the checks we send to the IRS were... a tax deductible expense?! That would just make my day. 😀
About Lynn Terry
"Not everyone wants to be a millionaire. Not everyone wants the responsibility that comes with that kind of lifestyle. "
This is so true. My husband and I have an 'agree to disagree' - ment going on over this right now. His thinking is we should always be pushing for more. More products, more clients, more money. I just want enough to live a nice life, a vacation once in a while, and the time to enjoy it.
I don't think most people really know for sure that they do in fact want that lifestyle, until they achieve it and live it for awhile.
I actually consulted with several 7-figure business owners a few years back as my own business was growing dramatically - specifically looking for a "blueprint" on how that is managed in our industry. It *does* require a lot more management - and maintenance - particularly to stay ahead of the taxes. Which can tank you if you grow too quickly and you're unprepared, given you pay full tax on the dollars paid to the IRS - as that is NOT a tax deductible expense, lol.
If you do choose to go that route, or get taken that route by your spouse, consult with a financial advisor and a CPA and make sure you have everything in place to manage it properly.
Taxes done, yeah!!! lol 🙂 I pay quarterly and those payments hurt! But I don't have to pay that lump sum at tax time either =)
I for sure WOULD NOT want to live a lifestyle of a millionaire! Too much money to try and hide and HAVE to spend by tax time AND too complicated. 😮
However, somewhere in between a quarter and a half would be nice. LOL 🙂
Happy tax day!
I am off to meet with my CPA this afternoon, LOL. Nothing like last minute. 😉 I'm curious to know if you overpay quarterly and get a refund for the overpayment? It seems to me they always overestimate quarterly payments...
The overpayment (if there is one) is always applied against my quarterly payments for the next year. 😉
Good to know. Way to stay on top of it! 😉
I didn't know Abraham Lincoln died on April 15th! 😮 lol Shows you what I know. :p
Fun Fact - and timely quote 😉 LOL
Hey Stephanie, have not interacted with you...seems like years! Glad to hear you did well this past year.
🙂 What's your FB page? I don't think I've seen you there. You still have your board open?
Hi Tammy. My FB page is https://www.facebook.com/homewiththekids or /stephfoster if you're looking more for me than my site, and I don't have my old discussion board on my site, although the rest of the site is still going nicely.
I pay quarterly and did a great job of it this year - only got a few hundred back. My husband was shocked by my totals. He knew it had been a great year for me, but he didn't realize how good, even though he knew how good the peaks were.
I agree Stephanie - it's always good to look at the income side of those taxes and see what a great year you had! Proof of all your hard work, no doubt. 😉
Lynn (or anyone), I know this post is over a year old but I just had a couple questions regarding taxes. I own a couple of websites which I market affiliate products (bodybuilding supplements). I do not sell any of my own products (I used to have an eBook but took it down as eBooks don't sell very well in this industry). My questions are:
1) Is there a specific type of accountant for affiliate marketers? All of my affiliates pay through PayPal and PayPal does report anything over 20k (currently) so I'm not sure how I would even go about claiming my earnings (I did not claim last year but I will need to this year).
2) Is it best to do an LLC or Inc even though I don't sell any tangible products of my own? I also have a corporate job and not sure it's best to add this as personal income on top of my salary.
Sorry for the lengthy questions; I'm just worried at this point because my sites are picking up but I'm not sure how to file these earnings.
Thank you,
Jason Stallworth