Are There Any Benefits To Filing Early?

Lots of people wonder whether there are any benefits to filing taxes early.  The main benefit is that if you're expecting a refund (as most people do), then you'll get it sooner.  A more subtle benefit (or more like a penalty for waiting till the last minute) is that if you need to hire someone to help with your taxes, they're likely to charge you more if you wait until the last minute.

What is Maxit Tax Manager?

Maxit Tax Manager is a tool that gives you real-time analysis and reporting on your tax situation and helps you to plan your investment strategy in a tax-effective way.  It includes cost basis calculations, wash sales, and figures out your correct tax liability based on the parameters you provide.

My Worst Tax Mistake

A good starting point for this blog (and an illustration of how important it is to manage your tax situation properly) is my own worst tax mistake.  I was working for a start-up with a stock option plan and had options for close to 3% of the company.  Having been with the company for several years, my options were fully vested (meaning I could exercise them at any time).  Because I was hired almost immediately when the company launched, the strike price of my options was nearly zero.  For about $300 I could have converted the options to equity in the company.  But I never did that, incorrectly assuming that having the options was "basically the same thing".  When the company was sold for cash, I had to pay my taxes as short term capital gains instead of long term capital gains.  So by not spending $300 up front, I ended up paying close to an extra $20,000.  Oops!

Introduction to Tax Manage

There are plenty of tricks you can use to put yourself in a more favorable position when it comes to taxes, and plenty of huge tax mistakes you can make.  I'll be sharing various stories, explanations and tips to help manage your taxes and avoid those mistakes.