Taxes: To Owe or Not to Owe?
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I’m team owe or get as close to $0 as possible. The way I look at it is:
Your money is an INTEREST FREE loan to the government.
Wow. Would a bank ever give you an interest free loan? Absolutely not. If you took those thousands of dollars and invested it in a US stock index fund in 2019, you’re looking at about a 20% return! Your money is working hard for you!
This is the strategy I’d recommend to those who are responsible with their money. If that’s not how you operate and you don’t set aside a little fund for paying taxes, then by all means go for a refund.
Now take my advice with a grain of salt, because this year I got a refund amounting to ~$2,000. At one of the contracts I worked they put 1 allowance instead of 2, resulting in this tax refund. However no regrets, because it actually came at the perfect time since I’ve been freelancing since December. The thing about entrepreneur life is that I have many outstanding invoices that haven’t been paid yet. I feel rich again! So there are two sides to every opinion.
If you haven’t filed your taxes yet, I used TurboTax. I tested a few other sites and landed on this one since it was the easiest in importing your info and guiding you through the entire process. I had to pay $90 since I had an HSA form that I had to file, but even my CPA friends use TurboTax to do their own taxes. Click here to get a 20% discount using my affiliate!
This year I will definitely owe since I have a bunch of 1099s I’ll receive for my freelance work. All for the best! Happy tax season, may you owe OR get a refund, whatever is best for you!
xo, Catie
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