Money Management is Essential for Financial Security.
Five money moves to get the most from your tax refund in the new year—and you can do it online. (PHOTO: US Sun)
Make sure you pay enough taxes on your 2022 income to avoid penalties and a large tax bill the following year, according to The US SUN. Verify that your money was taxed properly. The IRS Tax Withholding Estimator lets you check and change your withholding. Self-employed people can pay estimated taxes to the IRS by January 17, 2023. Increase your 401(k) retirement savings. In 2022, you can donate $20,500 or $27,000 if you’re 50 or older. If your company matches contributions, donate enough even if you can’t max it out. Like free money! Only one pay period remains in 2022, so act immediately.
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Saving for emergencies is crucial. Surveys show 41% of workers don’t have an emergency reserve. Part-time work helps ease economic and layoff fears. Check online savings accounts with greater interest rates to maximize your emergency fund. Holiday expenditures should be planned. Choose your payment method before ordering. You may keep to your budget with cash or digital payment tools. Use low-rate credit cards and avoid retail credit cards with high interest. Consider your charitable giving. It may be difficult to deduct taxes this year. Single filers can deduct $12,950, but you may need to itemize. Plan regular charity gifts into your budget. Giving back means helping causes you care about and getting tax savings.
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