In case you don’t know but up to $2,500 of the interest portion of student loan payments can be tax deductible if your modified adjusted gross income is below $80,000 (for singles) and $160,000 (for married filing jointly).

Unfortunately, you can’t deduct your expenses on job hunting if you are looking for a work in a new career field or a full-time work for the first time. But there’s a possibility of tax breaks if you’re moving to a new city for your first job.

Each year, up to $18,000 can be secured from your income taxes if you contribute to your company’s 401(k) wherein you can also start your retirement savings. In addition, if you are enrolled in a high-deductible health plan, you could secure another $3,400 (for singles) and $6,750 (with family coverage) on your contributions to a health savings account. Putting your money into a flexible spending account can help you keep an additional $2,600 out of your taxable income as well.

Big deductions for business expenses could be claimed if you are planning to be your own boss or be a freelancer as a new college graduate. Southbourne Group advises that you should save at least 25% of what you’re earning for the IRS.

Lifetime Learning Credit is also a good thing to consider. You can claim up to $2,000 of tax credit per year for post-secondary work at eligible educational institutions. But this is possible if your modified adjusted gross income is below $65,000 (for singles) and below $131,000 (for married filing jointly).

Being able to save also brings different wonders such as cutting your tax bill. It is possible as well to qualify for the Saver’s Credit if you have an adjusted gross income of less than $31,000 (for singles) and $62,000 (for married filing jointly). Up to 50% of the first $2,000 and $4,000 you contribute to an eligible retirement plan can be reduced on your tax bill.

Getting tax software and a professional help from experts are good options to consider but make sure not to overspend on each. You can depend on free packages from many tax software companies if you have simpler tax situation. Volunteer Income Tax Assistance program could also be your choice if you want professional help.

We have our own ways of facing our taxes, but with those mentioned above, Southbourne Group hopes that you learn something that can help you move on with your taxes.

 

If you currently have a huge debt to pay for or you wanted to avoid having one, Southbourne Group prepared the following basic tips to help you start your journey to a debt-free financial life. These are also made with the help of some financial coaches who already hit financial rock bottom and would like to share their own advice on getting through such struggle.

 

 

Learn and apply proper control on your personal finance to steer clear of debts as well. And in order to do this properly, you need to be strict with yourself and harness discipline. No control over your spending could only lead to your financial fall, or worse, even hitting financial rock bottom. Create a strict budget and follow it at all times to have a stable financial condition.

 

Things don’t always go the way you wanted them to. Unwanted things could happen like losing your full-time job and having a part-time job instead or your partner losing his or her job. Such events could really affect you financially, so you must learn to adjust your financial lifestyle under those conditions. 

 

Paying your old debts with new ones will not make any sense because it would only be a nonstop cycle. Stop getting debts now and look for other ways to pay your old ones like searching for additional jobs to earn more income. Work hard to pay those debts and don’t add new ones. 

 

 

Each of us might have our own meaning to financial freedom. But Southbourne Tax Group will use Scott Young’s definition for this subject where it says that financial freedom is about “earning enough money and building the mental discipline to keep that money from controlling you.” Strong and disciplined mentality can really help you in controlling your money. You can avoid being trapped in your finances if you apply the right attitude in handling your money. 

 

 

“A wise man should have money in his head, but not in his heart.” You are a human being that needs to fill his emotional life as well. You need to develop friendships with other people and have good memories with them and create meaningful adventures with your family. With those things, you’ll feel alive. “Love and compassion are necessities, not luxuries. Without them, humanity cannot survive.”

 

 

If you have a bad financial situation, it is time to make a change and have a resolution to never have huge financial mistakes ever again. You can avoid a financial fall, along with having debts, by being committed to your resolve. 

 

That’s it! Those four were the basics Southbourne Tax Group believes that you need to prepare for your endeavor to have a good financial future. May you have a fruitful financial life and may you fulfill your goals.