Occasionally, Logix will invite members of the community to contribute to our blog. These guest posters bring unique perspective to financial subject matter, but the opinions expressed may or may not represent those of Logix.
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With tax time once again upon us we may have any number of things going through our minds. For some it is a time of dread, and for others it is akin to a post holiday bonus in the form of the tax return. What is consistent, though, is the fact that we all have to do them. It may be as simple as handing a stack of papers to your accountant or it could mean sitting down to a pile of receipts but as Benjamin Franklin said “In this world nothing can be certain except death and taxes.”
How we think about our tax debt can have a great impact on how we decide to proceed with addressing it. As most of us begrudgingly pay the least amount we can get away with it is important to remember the services that come along with our contribution. It's the fact that each member of our society is charged with helping keep it up which makes us strong. It's literally what unites us from a fiscal sense.
Be it the police department, school system, or water and power, the public services we partake of are fundamental to our way of life, and though we don’t always take the time to remind ourselves what we are paying for, doing so might make this time of year a little less painful. Let’s not take this to mean we should not be diligent in taking advantage of exemptions where available. Just as it is a part of our civic obligation to pay taxes it is part of our personal obligation to make sure we are taking care to protect our assets and pay smartly.
Looking back on our income and our outgoings this year should be a time of reflection on the choices we have made. It is a perfect period to reframe our goals for the year and put sincere thought into how we would like to move forward. There can be nothing worse than repeating the same mistakes, but tax season is a time when we have a chance to make corrections and also a period when we can gain new knowledge which will help with our longer term financial planning.
The goal is not to evade taxes, nor to over pay, but to responsibly uphold your social duty in balance with your personal needs. This means we can not necessarily look to our neighbors and replicate what they are doing. Some tips or exemptions are not for everyone. We have got to be honest and forthright with our actions and expectations when it comes to this process. If we approach tax season from the perspective of anger and resentment there is no way we can have a positive experience. If instead, we look at is as an opportunity to become more financially wise then we are much more likely to get a greater return.