There’s no denying that over the last decade, the idea of the nature of work and money for Americans has changed. Of course, it’s been changing for years – gone are the pension plans of our grandparents and the product-based economy that supported them.
Today, Americans build far fewer things, and services have taken over as the basis for most of our jobs. That’s not to say we don’t build anything, but fewer and fewer among us are in that sector. As a direct result of the Great Recession, a lot of us began picking up side jobs and contract work. Uber, UpWork, and dozens of other business models are now in place to help bring buyers and sellers together and help folks to put back a little extra money.
But what about folks that are truly busy? The stay-at-home Mom, raising three children while her husband is deployed? The legal assistant who is going to law school at night? The poor soul who is already working three jobs?
Where can they find a little extra money at the end of the month?
Well, as an accountant, it’s me and my team’s job to figure out how to put more money in every one of my client’s pockets. With that in mind, let’s talk about ways to do that.
The first thing we would ask if you came into the office needing more money would be to look at how your taxes are structured. How many deductions are you claiming? Are you leaving money on the table because you haven’t itemized, or are you “stuck” filing your own taxes and using a software that might not prompt you to look in the right places?
Everyone loves a big refund I the Spring, but let’s be honest. If you’re broke the rest of the year, then it might be smarter to spread some of that money out so that you don’t stress as much each month. Even an extra $25 a week can help. And you’ll likely still be able to generate a refund at the end of the year.
Now, that’s the easy one – any accountant worthy of the name can help you figure that out, but let’s get into some of the more subtle ways you can make extra money if a time-for-money gig isn’t in the cards for you.
First of all, most of us have too much stuff. If you have kids, you know that toys, clothes, and “accessories” all seem to magically grow with time. Sell them! There are consignment shops for kids’ items in every town. While they may or may not pay you a fortune for the items you’re tripping over at home, they’ll get them out of the house. In a pinch, you can donate them, to, and when you do, you’ll have a nice deduction to add to your taxes.
Along those lines, you certainly have that option for clothing and items you aren’t using anymore, too. Use it! Not only will you clear out the clutter, you’ll make a little extra money – and that’s the point of this exercise, isn’t it?
For the more tech-savvy, selling these items online, in venues like Ebay, can provide the same benefit. Making money while you do other things.
If you or your clients have any tax issues or problems with the IRS/State or other federal tax problems, please feel free to contact me directly at (909) 570-1103 or by email at Carlos@HealthcareTaxadvisor.com
Carlos Samaniego, EA
Licensed by The Department of Treasury to represent taxpayers
1255 W Colton Ave, #535
Redlands, CA 92374