Why you should be Happy you have to pay taxes.

You’ve probably seen a recent article going around where Mark Cuban is proud to pay taxes and while you probably won’t be paying the amount that the article states. You should be happy that you’re paying taxes.Yes you’re paying out money to a government you may not agree with or agree with how they spend it, but paying taxes means you’re making money.

I’m saying this because I’ve been self-employed for the last several years. And if there’s a year that I don’t pay any taxes. That means I haven’t made any money to support myself or my family. Do I wish I got to keep that money for myself and not wince a little when I send out relatively sizable checks for quarterly and year end taxes. Absolutely, but again. If I’m not paying taxes. I’m not making money.

If you do find your self-employed, like myself. I’ve found a couple different things to be super helpful when it comes to taxes. First and most important is setup a savings account where you put a certain percentage of ever dollar you bring in specifically for taxes. The percentage I use is 30%, which is above my actual tax rate, but I’d rather have more money than not earmarked for taxes should any unexpected surprises popup. Worst case. You have a nice little pile of cash once you’ve settled up on taxes for the year. Next would be to either find a tax preparer that helps you find deductions or brush up on tax codes to know what you can deduct or not. Personally I have a tax preparer do mine and the biggest reason is they calculate my quarterly taxes for the upcoming year and hand me everything I need to pay them down to properly addressed envelopes to send them in.

So like the saying goes “It’s inevitable as death and taxes.” Don’t be a curmudgeon when it comes to paying taxes because there’s really no good way around it because if you’re paying taxes in the end. You’re making making money in the end.