It is tax time again, and if you are using Tara’s Envelope System of Money Management, it’s time to start saving for taxes. This is a really complicated formula. Are you ready? Here it is.
Make another envelope, and write “IRS” on it.
Now, if you’ve worked a lot, and thus have to pay a lot of taxes, put $200 every night you work in it before splitting the rest of your money into the other envelopes.
If you’re a slacker like me, put $100 off the top in it every night, and $200 on nights that you clear $600.
Sometime towards the end of March, find a tax person who works with independent contractors (ie, not H&R). Bring your bank statements and all your work-related reciepts, or a total of what they are. School reciepts too, if you’re a student. Sure you could do your taxes yourself, and you may want to, but unless you’ve done it before a good tax person will save you more then you have to pay them. Also, I think you’re less likely to get audited if you didn’t do your own taxes and if you call yourself something besides stripper.
They’ll be able to give you everything you need to file with the amount that you have to pay. At this point, if you are way behind what you need to pay, it is acceptable to put all your money in your IRS envelope until April 15.