"Give to Caesar what belongs to Caesar" (Mark 12:17).
These words spoken by our Savior reveal that there is a tax responsibility as we seek to be citizens who are under governmental authority. This said, how we structure our tax liability can also have a great impact on the Kingdom of God and keep more of our hard-earned income in our pocket if we are wise.
Tax time is here again and it does not have to take us by surprise. Yet still, it does for many. But living in fear of tax time is not necessary. The tax code changes from year to year, but you can be prepared. We want to help you navigate those changes so you can also steward your tax payer dollars.
Taxes are an opportunity to wisely steward. How we structure our giving can greatly impact our tax penalty. And what if a portion of what we are spending on taxes could have helped a charity, instead? Not paying enough taxes can also end up wasting money. Below are some principles to remember and some links to articles to help you as you prepare your tax return.
Take Credit
Take credit where credit is due. Don't neglect the tax credits that are provided. Child care tax credit, state income tax paid last year, medical or charity miles driven are some examples. The articles below go into further detail, as well.
Take Deductions
Don't miss out on the tax advantages for items that can be deducted from your overall tax penalty. Home office, mortgage interest, and charitable giving deductions can go a long way in defraying from your tax liability.
Make Contributions
Maximize your IRA and HSA contributions. According to Turbo Tax, you have until the filing deadline to open or contribute to a traditional IRA for the previous tax year. That means you can make a contribution that counts for your 2020 return by April 15, 2021.
Zero-Tax
The more you make, the more the IRS withholds. Or not. Careful tax planning could significantly reduce your tax burden even if you have a fairly high income. Schedule a consultation with us to discuss.
Don't fret at tax time. Be wise and apply sound biblical principles.
Here are some links to help you plan wisely and well for taxes.
- How to Make the Tax Code Work for You
- A Taxing Story: Capital Gains and Losses
- Budget Check-up: Tax Time is the Right Time
- Five Most Overlooked Tax Deductions
- Tax Deductions You Won't Believe
Yours for Wise Stewardship,
Jeff Rogers