Best Debt Companys

163 Companies 5,416 Real Customer Reviews

Tax Dollars at Work…For You

Posted By:  |  October 20, 2015  |  0 Comment(s)

Cash dollars at work

The more money you have, the more you can affect your personal sphere of influence. This is an axiom. You decide what grocer to support, what kind of car you can buy (and afford), how much you want to give to charity and how best to invest your hard-earned dollars. It follows, then, that the less income you have to work with, the narrower your choices become. And while you may consider yourself thrifty, it’s far more effective to be aggressive when it comes to keeping as many of your tax dollars as you can.

Now, just to be clear, you should never endeavor to cheat your way out of a legitimate tax liability; this will only spell eventual disaster. But at the same time, you shouldn’t willfully give more than you’re legally obliged. Believe it or not, there are several common mistakes that even the shrewdest taxpayer makes. And these seemingly minor errors actually add up to quite a bit over a short period of time.

Examine Your Paycheck

If your employer withholds taxes, this saves you the trouble of estimating and paying them quarterly throughout the year. However, it’s easy to overlook just how much is getting diverted to Uncle Sam. A common misconception is that you should receive a sizable refund when you file your taxes. The truth is that a bigger check at tax time may be an indicator that you’re paying too much throughout the year. How much is withdrawn from each paycheck was determined by you when you began your employment. If you indicated too much be taken out for taxes, you’re essentially providing the government with an interest-free loan each year (which they return after filing season). Have a close look at your next paystub to see if you’re spending money that could go somewhere else, like your wallet.

Insurance Strategies

By now, everyone knows that failing to obtain health insurance can be costly when tax season arrives. But there are a couple of scenarios you’ll want to consider before assuming you’re stuck. First, while you’re required to have a qualified health plan, you’re not obligated to choose any one provider. As such, it pays to shop around. Even if your employer offers coverage, for example, you might just have a cheaper option with a private provider. Alternatively, if your work and financial situation is dire, you may qualify for a health coverage exemption. In fact, there are a number of different exemptions for which you may be eligible. Even a penny saved is a penny earned.

Deduction and Credit Oversights

It’s easy to overlook important money-savers, particularly when you’re hastily preparing a tax return (who really wants to spend more time than necessary dealing with taxes?). A little legwork, though, can not only cut any tax bill, it can actually mean a bigger refund. If you don’t feel comfortable exploring these options on your own without making a mistake, talk to a reputable tax professional. Even if you pay for their service just this year, you can use this as a learning experience for future filing.

Charitable Blessings

A silver lining to exercising some healthy philanthropy comes when it’s time to pay the tax man. If your donations were to a federally-recognized charity (see for details), you can take a deduction on your return. While this might sound like a minor addendum, it can make all the difference when you’re writing that check to the Treasury Department.

Regardless of your tax action plan, you may find it helpful to consult with a licensed tax professional. While it’s smart to scrape for every dollar you can get, you also don’t want to make an overzealous error. Creating a tax debt from a filing mistake truly defeats the purpose of looking for tax savings. Whether you’re preventing a problem or attending to one, though, a licensed tax professional is a good friend to have.


<–Back to Debt Blog Next Post: Avoiding an Unsound Tax Solution –>



  • How important is it to you for a debt consolidation company to offer financial education resources?
  • Takes your existing debt and try to settle with your creditors for a lower amount. If you pay off the settled amount, your debt will be considered paid in full.
  • Negotiates with your creditors on your behalf.
  • Fee based on a percentage of your total starting debt or a percentage of the debt they save you.
  • Most settlement companies have you create a separate "escrow" account where you will make monthly contributions over a certain amount of time to contribute to your settlement. Once there is a substantial amount of funds to show your creditors, the settlement company will try to negotiate a lower amount of debt.
  • Combines all your debts and creditors into one monthly payment.
  • Allows you to pay one monthly payment to the consolidation company, instead of multiple payments to different creditors.
  • You no longer owe your original creditors; instead you pay one monthly payment to your consolidation company.
  • Consolidation companies can help negotiate lower interest rates on your debts and help lower your total debt payment in the long run. A lower interest rate will lower the amount you owe in the end.
  • Allows you to consolidate all your different debts into one personal loan that can be paid off over time.
  • Can offer borrowers a lower interest rate with a longer payback term (compared to high-interest credit cards or medical bills). This will lower the amount of money required to pay off the loan over time.
  • Personal loan debt consolidation can be an effective way to raise your credit score quickly (within 3-6 months).
  • Borrowers can receive funds from their loan within only a few days.

Recently Reviewed:

Trending Blog Post:

Want us to review a company?

If there is a debt company that you don't see on our site, and would like us to review, please contact us.

Real Reviews (yes they’re real)

With so many debt relief companies out there, and a lack of sites willing to bring you the HONEST breakdowns of each company, what source can you turn to for the real information you can trust?

We are dedicated to bringing the truth out, and rank debt relief companies as they should be. Through our investigation, and experience with each company, we rank each company, and bring you our honest, unbiased opinion. We also include authentic user reviews by past customers of each company that are moderated and verified.

Like many sites, we are compensated through affiliate relationships with each company we review, however all of our rankings are based on our 11-Point Ranking Criteria.

All reviews are subject to moderation and approval. Any reviews that may resemble false information, or competitors of another company will need to be verified by our staff before being approved and published. We reserve the right to approve or deny any reviews left on this site.