tax

Timing Is Power: Cyclical Planning in Business and Life

In nature, everything moves in cycles—seasons change, tides rise and fall, plants grow and rest. Yet somehow, we’ve created a culture that expects perpetual growth, consistent output, and linear progress regardless of our human capacity for sustainable performance.

This disconnect between natural rhythms and life expectations is a primary driver of burnout, especially for women navigating fluctuating energy, hormonal cycles, chronic conditions, or neurodivergent patterns. These women are often unable to reach certain goals because those goals are based on the concept of predictable, consistent energy levels, which is unrealistic for many.

What if there’s a better way? We already know that it’s possible to earn without exhausting ourselves, and we’ve even explored strategies for going from ideation to income generating stream. Another path to sustainable success that isn’t discussed enough is aligning with your natural cycles.

The High Cost of Ignoring Your Natural Rhythms

Most business planning assumes:

  • Energy is consistent
  • Output should be linear
  • Success = constant growth

These assumptions might work for those with highly stable energy or abundant support systems (and if you need help creating those systems, then I can help with that). But for many women—especially those navigating health challenges or multiple responsibilities—these expectations create a perpetual gap between what’s expected and what’s possible.

The result? Chronic guilt, overextending during high-energy periods, pushing through low-energy periods, and a nagging sense that you’re somehow failing because your capacity naturally varies.

When we disregard our cyclical nature, several harmful patterns emerge:

Boom-Bust Energy Cycles: Periods of intense productivity followed by complete collapse, creating a perpetual recovery-overdrive loop that prevents sustainable momentum.

Diminishing Returns: Work produced during low-energy periods often requires redoing, ultimately creating more work than if you had rested.

Compromised Decision-Making: Important business decisions made during depleted states lack the clarity and foresight available during high-capacity periods.

Health Consequences: Chronically overriding natural cycles can trigger or exacerbate health conditions, creating a downward spiral of diminishing capacity.

The Benefits of Cyclical Planning

Capacity planning isn’t just about self-care—it’s a strategic business advantage. By designing your work rhythms around your natural capacity patterns, you:

Maximize High-Energy Periods: When you honor your natural high-energy times for key activities, you accomplish more with less effort.

Improve Creative Quality: Creating during aligned phases produces higher-quality work that requires less revision.

Enhance Decision-Making: Making key decisions during your naturally clear-minded periods leads to better strategic choices.

Build Sustainable Momentum: Rather than the boom-bust cycle, you create steady progress through strategic alternation between action and renewal.

Increase Revenue Potential: Aligned capacity planning allows for more predictable income generation that doesn’t deplete your resources.

The 4 Cycles to Track

Understanding and tracking your natural patterns is the foundation of effective capacity planning. While everyone experiences universal patterns, your unique combination creates your personal capacity fingerprint. By observing how you experience each of these cycles, you can determine your own unique balance of cycles.

Here are the four primary cycles to track:

1. Hormonal/Menstrual Cycle (if applicable)

If you are menstruating, the hormonal cycle creates distinct energy patterns that significantly impact work capacity and creative flow. Learning to track my menstrual cycle has helped me majorly optimize my business and overall lifestyle. It has been the biggest game changer for me! Here are the phases of the cycle, and what you can expect at each point.

Menstrual Phase (Days 1-5):

  • Energy Pattern: Typically lowest energy of the cycle
  • Cognitive Strengths: Intuition, evaluation, big-picture thinking
  • Business Activities Aligned: Review and assessment, visioning, minimal client work
  • Business Activities to Avoid: High-intensity sales calls, major launches

Follicular Phase (Days 6-13):

  • Energy Pattern: Gradually building from low to high
  • Cognitive Strengths: Increasing creativity, openness to new ideas
  • Business Activities Aligned: Strategic planning, brainstorming, learning

Ovulatory Phase (Days 14-17):

  • Energy Pattern: Usually peak energy and confidence
  • Cognitive Strengths: Communication, connection, persuasion
  • Business Activities Aligned: Presentations, networking, sales conversations

Luteal Phase (Days 18-28):

  • Energy Pattern: Gradually declining from high to low
  • Cognitive Strengths: Detail orientation, critical thinking, refinement
  • Business Activities Aligned: Editing, systems optimization, completion

Even those who don’t menstruate experience approximately monthly fluctuations influenced by hormones, lunar cycles, or other biological rhythms. If you’d like me to discuss these cycles in a future post, let me know!

2. Circadian Rhythm (Daily Cycle)

Your 24-hour energy pattern influences optimal timing for different types of work within each day. Here are some of the common chronotypes (different circadian rhythm profiles):

Common Chronotypes:

Early Bird/Lion:

  • Peak Energy: Morning (6am-12pm)
  • Secondary Peak: Early evening (4-6pm)
  • Best For: Schedule demanding cognitive work before noon

Middle of the Road/Bear:

  • Peak Energy: Mid-morning to early afternoon (9am-2pm)
  • Secondary Peak: Early evening (6-8pm)
  • Best For: Core work mid-morning, creative work evening

Night Owl/Wolf:

  • Peak Energy: Late afternoon and evening (4-10pm)
  • Secondary Peak: Late morning (10am-12pm)
  • Best For: Creative work evenings, meetings late morning

Dolphin (Irregular Sleeper):

  • Peak Energy: Inconsistent, often mid-morning and late evening
  • Best For: Leverage unpredictable energy bursts for focused work

As a lifelong night owl/wolf, I always do my best work in the evening, and it’s no accident that I don’t start work before 10 AM. I generally try to rest during the times when I’m not as naturally productive: that way, I don’t have to redo tasks that I completed when I wasn’t at my peak.

3. Weekly Patterns

Most people experience consistent weekly energy fluctuations influenced by social structures and psychological momentum. This is, of course, influenced by menstrual, hormonal, and circadian cycles as well, but, assuming that you can have a consistent intensity of tasks each day during the week, you may notice additional patterns. Here are some common weekly patterns that may resonate with you:

Common Weekly Patterns:

Strong Start/Fade:

  • Peak Days: Monday-Wednesday
  • Challenging Days: Thursday-Friday
  • Best For: Schedule important meetings early week, lighter tasks later week

Mid-Week Peak:

  • Peak Days: Tuesday-Thursday
  • Challenging Days: Monday and Friday
  • Best For: Use Monday for planning, mid-week for execution

Strong Finish:

  • Peak Days: Wednesday-Friday
  • Challenging Days: Monday-Tuesday
  • Best For: Easier tasks early week, building to complex work later week

In my case, mid-week peak most closely mirrors my natural rhythms. I prefer a very easy start and finish to the week, while my Tuesday – Thursday can be more intense.

4. Seasonal/Annual Cycles

Larger seasonal patterns influence energy, mood, and capacity on a quarterly basis. This is the reason why I recommend Seasonal Resets (you can still see my Summer Seasonal Reset over on my Facebook page). These allow you to regroup quarterly, so you can align your business and personal activities with the predominant energy of the season.

Seasonal Considerations:

Winter (or Low Season):

  • Energy Pattern: Often lowest sustained energy
  • Business Focus Aligned: Planning, foundation-setting, deeper projects
  • Business Activities to Avoid: Major launches, high-visibility campaigns

Spring (or Building Season):

  • Energy Pattern: Gradually increasing energy
  • Business Focus Aligned: Learning, developing new offerings, growth patterns
  • Business Activities to Avoid: Immediate results expectations, rigid schedules

Summer (or Peak Season):

  • Energy Pattern: Typically highest sustained energy
  • Business Focus Aligned: Launch, visibility, expansion, connection
  • Business Activities to Avoid: Deep introspective work, complete overhauls

Fall (or Harvest Season):

  • Energy Pattern: Gradually decreasing energy
  • Business Focus Aligned: Completion, refinement, systematization, evaluation
  • Business Activities to Avoid: Brand new initiatives, scattered focus

Your Monthly Energy Map

Creating a visual representation of your energy patterns provides powerful clarity for planning aligned business activities. Start by tracking daily:

  • Energy Level (1-10): Your overall capacity for the day
  • Energy Type: Creative, Focused, Social, Administrative, or Rest
  • Influencing Factors: Hormonal phase, sleep quality, events, etc.
  • Aligned Activities: What works best with today’s energy
  • Activities to Avoid: What would likely create strain today

After tracking for at least one complete cycle (1-3 months), look for patterns:

  • When do your highest energy days typically occur?
  • When do your lowest energy days typically occur?
  • Which energy types appear most and least frequently?
  • How quickly do you transition between different states?

This awareness becomes the foundation for strategic planning. If you’d like a template for tracking your energy, please click here.

Creating a Flexible Capacity Plan

Cyclical and capacity planning isn’t about forcing consistency—it’s about designing flexibility. The goal is to create a framework that accommodates your natural fluctuations while still providing enough structure to build sustainable momentum.

Understanding Your Capacity

Learn to view your different energy levels as capacity modes. If you can put a number on your energy level, then you can quickly identify the activities, communication style, and rest approach that will suit you best.

Energy level 8 – 10 can be considered full capacity mode. This is a great time to work on growth, expansion, innovation and connection. It’s perfect for any communication that is responsible, generative and expansive, and fantastic for launches, content creation and new client outreach. When it comes to rest in this mode, brief but regular renewals are usually sufficient for sustaining momentum.

Energy levels between 5 and 7 are standard capacity mode. This is an ideal period for maintenance, refinement, and working steadily on an ongoing project. This is when you can plan to release deliverables, optimize systems, and implement strategies that are smaller scale but still impactful. Your communication should be structured, focused and have clear boundaries, so that you can use your energy wisely. You’ll need more extensive rest than when in full capacity mode.

For the chronic pain crew, energy level 3 – 4 is probably familiar territory. This is the limited capacity mode, which is suitable for essential maintenance (the things that absolutely must be done), passive income activities (so long as they require little energy), and minimal operations. Anything automated, with templates, or delegated to others should be leveraged. You should also keep communication minimal and structured, and focus on clearly communicating expectations (you have less energy to go back and clarify). Finally, prioritize rest, and work in short, gentle session.

Finally, when the exhaustion is at it’s peak (energy level 1 – 2), you’ve entered restoration mode. This is the phase where you only do business through previously created, well-operating systems. Client care should be primarily through automated support, and communication should consist of activating out-of-office protocols. Take as much time as you need to rest: you can’t produce from this level of exhaustion.

The power of this framework lies in its flexibility and legitimization of all modes. None is “failing” or “less than”—each is a strategic response to your current capacity that keeps your business functioning while honoring your humanity.

The Cyclical Approach: A Better Way to Do Things

Ready to begin aligning with your natural cycles? Try one of these activities over the next 7 days:

  1. Track Twice Daily: Record energy and mood AM + PM for 7 days
  2. Cyclic Meal Prep: Sync your meals with energy levels (e.g., quick meals during dips)
  3. Create Your Capacity Template: Map out a recurring weekly or monthly rhythm
  4. Plan a Rest Ritual: Commit to one deep-rest activity 2x this week
  5. Energy Audit: Review your current tasks—are they cycle-aligned?

After completing your chosen activity, reflect: What pattern emerged that you didn’t expect? How can this data change how you schedule work or offers? What support do you need to live and earn more cyclically?

Your Cyclical Advantage

When you align your business activities with your natural capacity patterns, you gain several powerful benefits, like enhanced creativity, improved decision quality, sustainable momentum, and more authentic marketing and connection. This approach might seem radical in a culture that glorifies consistency above all else. But what could be more practical than working with—rather than against—your body’s natural design?

Your fluctuations aren’t flaws to overcome—they’re natural rhythms to leverage. By making timing your superpower, you’re creating a lifestyle that works with your body’s wisdom rather than against it—a truly revolutionary approach to sustainable success.

Why I’m Diving Deeper into Tax Law Right Now

Sometimes legacy work calls you into new terrain.

Or, more accurately, into old terrain with fresh urgency.

I’ve described myself as a tax alchemist, someone who reads and interprets codes and designs wealth strategies that are sacred and sophisticated.

But in light of recent developments, I’ll be turning even more of my attention to the evolving world of tax law — and I want to bring you along for the journey.

The landscape is shifting

A newly passed comprehensive bill — the “One Big Beautiful Bill” — has introduced sweeping changes that will ripple through tax planning, compliance, and wealth structuring for years to come.

Simultaneously, a recent Supreme Court decision regarding the IRS, the tax court, and collections due process has redefined certain guardrails that taxpayers have long relied on.

Translation?

The frameworks that protect your wealth, your legacy plans, and even your day-to-day financial serenity are all being re-negotiated in real time.

What this means for you

Most people only discover these shifts when it’s too late — when they’re hit with unexpected liabilities, audits, or discover that their previously sound strategies no longer hold.

But in the Aureum Sanctum, we approach this differently.

We stay ahead by weaving regulatory changes into our rituals of wealth stewardship before they become crises.

This is why I’ll be dedicating more of my offline time to unpacking these new legal currents — what they mean, how they might impact your trusts or business entities, and how we can continue to shape them into elegant, protective structures for your family’s future. And, as I uncover crucial details, I’ll bring these insights back to the Sanctum.

The Aureum Sanctum approach: calm, clear, strategic

If the idea of diving into dense tax law makes you anxious, take a breath.

We approach this the same way we approach everything here: with calmness, clarity, discernment, foresight, and the steady reminder that wealth design is both art and architecture.

Together, we’ll navigate these changes without panic — only with precision and the quiet confidence of knowing your financial house rests on solid, beautifully crafted foundations.

What’s next

So expect to see more updates in the coming weeks and months:

  • Thoughtful explorations of the new bill’s most impactful provisions
  • Insights on the Supreme Court’s most recent collection due process decision and what it might mean for audits and collections
  • And practical, graceful guidance on how to pivot your tax and legacy planning strategies in light of it all.

Because at the end of the day, my mission remains unchanged:

To help you build wealth that is elegant, enduring, and exquisitely aligned with the life you’re here to live — no matter what the laws of the land decide to rearrange.

The Evolution: From Tax Strategy to Ritualized Living

For years, I’ve worked in the world of tax and had incredible experiences. I consulted with a wide variety of clients, mostly international, where I offered feedback on existing systems and proposed policies. I’ve had an amazing time as I mastered my craft, and helped my clients navigate the ever-changing terrain of tax developments.

Me, as a newly married International Tax Auditor

The work was interesting, meaningful, and satisfying. However, there was something in me that whispered gently, “There is MORE“. The only way to clearly hear that whisper – and all that came with it – was to retreat. I had to give myself space to uncover what my soul longed to create. So, that’s what I did. I posted here only when I was inspired, letting alignment dictate the content I shared. But I spent the rest of the time researching . . . experimenting . . . resting . . . meditating . . . and asking myself what the world needed most from me. And now that the vision is clear, I can finally share it with you all.

Wealth isn’t just about what’s in your account and what’s on your tax return. It’s about how you feel. The way you move, the way you build, how safe you feel within yourself, how safe you feel when money enters the equation: all of these factors are reflections of your wealth. When I got clear on the many ways that wealth shows up, I saw the gaps that exist with current financial advice, and I knew what was needed from me.

The Shift: From Function to Fulfillment

I still love taxes, and financial structures and systems will always have their place. But many of us don’t need any more advice on hustles, side gigs, and job hopping for raises, nor do we need more rules and restrictions to follow. We already know how to work well and follow the rules. What we actually need is more ritual, reverence, and room to receive the lives and outcomes we desire. We are starved for pleasure, deprived of comfort, and in desperate need of replenishment.

So I’m shifting the focus on this space, from mostly tax-specific discussions, to a more intuitive yet still structured approach to wealth building and management. As opposed to some of the rigid advice of the past, this space will explore the ways to incorporate soft structure, daily ritual and connection, and elegant execution into the financial frameworks we navigate. I’ve seen firsthand how blending these concepts creates space for wealth, ease, and peace to flourish in my own life.

The goal of this shift is to create and discuss financial patterns, practices, and systems that soften, heal, nurture and refine us while building our wealth.

Hanging out in the office before meeting up for lunch with friends

What You’ll Find Here Now

You will still find lots of substance, unique perspectives and interesting tax news here. But the energy has shifted to something more comprehensive, and more crucial for this time.

The themes that often pop up when talking about finance – urgency, overwhelm, shame, frustration and pressure – have no space here. We’ll be learning to work with money while incorporating the practices that allow us remain regulated, centered, clear minded, confident and magnetic to the outcomes we prefer. We’ll make the hard things easier than ever, and we’ll do it with grace, style and delight.

On this blog, and in some upcoming special events, we’ll explore:

  • Ritual based wealth tools and strategies
  • Sensory and seasonal approaches to financial planning
  • Wealth inspiration that taps into ancient and cultural wisdom
  • Quiet and impactful luxury
  • Soft power, strategic action and sustainable success

Who This Is For

If you’re interested in finance but also . . .

  • Want systems that feel beautiful, nourishing and full of ease, not burdensome and depleting
  • Feel called to step into more restorative approaches to financial management
  • Are ready to create wealth in a smart AND sacred way
  • Value clarity, elegance and rhythm in life and money

. . . Then you’ll love it here.

Welcome To This New Chapter

The framework I’ll be sharing over the upcoming weeks and months is built on a singular belief that has completely changed wealth for me (I hope it does the same for you, too!)

Wealth should feel like home. It should be a sanctuary, where you are welcomed, protected and restored.

I am honored to share this experience and walk the path with you.

We’ll still have lots of the practical gems discussed in this space. But now they’ll be paired with gentle philosophies, invigorating ritual, and restorative practices.

Welcome, or welcome back. I’m happy to have you join me on this journey.

It’s Been Seven Months. Here’s What I’ve Been Doing

Hello friends! It’s been a while since my last post, for good reason. I will occasionally withdraw from blogging, so I have time to implement some theories and to get data to share with you all when I return. It’s been my system for a while, mainly because writing a bunch of fluff – just for the appearance of continuity – never appealed to me. I’d rather offer something substantial a few times out of the year, than to share flimsy articles weekly.

So, here’s what I’ve been doing: I created a few more digital products, and I experimented with a few selling platforms. I didn’t want to recommend certain selling strategies without testing them myself. I always do just enough to see what works, and I only go further if I know it’s worth it. Most of them time, it isn’t worth it! But at least I can speak from a point of experience and not just theory. Of course, it takes time to do gather these experiences so that I can report the results back to you all.

Another thing I’ve done is witness the monetization “arc” of several AI websites. Quite a few of the websites I’ve previously recommended are now behind paywalls, and, while I can understand why the developers did that, eliminating limited freebie versions are why many users are turning away. This is always why I think ChatGPT (and other platforms that offer some access at no cost ) will remain dominant: even if the free version isn’t the best, it’s better than no access at all. Besides, with the proliferation of AI capabilities being built into apps and programs we already use regularly, the accessibility of this technology will continue to grow, many times at no direct out-of-pocket cost to the end user.

I joined a business mentorship group, and I found a tribe of entrepreneurs that are regularly structuring and executing 7- and 8- figure projects. It’s been exciting to be in this hub, and I’m thrilled to offer some incredible products, programs and tips to you all in the future, based on the millionaire habits that I’m picking up from my peers.

I’ve taken a LOT of tax training, mainly for the purpose of learning new ways to interact with wealth. It’s fine to learn the basics, but once you’ve mastered those, you have to dive into deeper material. One of the subjects that I’ve spent more time exploring is estate and trust law (and how the tax law applies to these areas). Learning about estates and trusts has been exhilarating, and I’m excited to start practicing some new things with what I’ve learned.

Finally, the past seven months have been focused on synthesizing and integrating what I’ve taken in so far. One of the biggest traps that snare aspiring wealth builders is staying stuck in “learning” mode. Yes, learn as much as you can, but also begin implementing what you’ve learned. The inability to implement what has been learned is often rooted in insecurity: many of us learn what we can then we get afraid of doing something with it. “What will people say about me if they see me doing ABC?” “What happens if I fail at XYZ?” These questions come from feeling uneasy about doing new things and breaking away from the crowd. I’ll explore this idea more in a future post, but please know that, along with learning new stuff, work on your mindset and start integrating what you’re learning, so you can get the results you desire. Affirm your abilities, take a small step every day, and watch your life start changing in no time.

So, that’s what I’ve been doing the past seven months: learning, testing, observing, practicing, and succeeding. But since I’m a woman of my word – I believe in ACTION alongside learning – it’s time for me to share more about what’s happening behind the scenes, as well as what I want to create in my world. I’ll be posting my August – December goals soon, and sharing with you all how I plan to reach them. Please take some time to think about what you can do during the latter part of the year, and what goals you want to achieve. Let’s make this your best year ever, together!

What I’ve Learned From Ten Years As An Enrolled Agent

This year, I celebrate TEN years of being an enrolled agent! I don’t discuss my previous IRS career often, so this seemed like a good time to talk to you all about it, as well as to reflect on what I learned over this past decade.

I started working at the IRS in the call site, then I became a correspondence auditor on a whim (I put in one application in Washington, DC, and I got selected for the role). I eventually got promoted to an international tax specialist role, where I completed hundreds of audits of foreign nationals living in DC, as well as audits of US citizens living abroad. I loved the work, but I disliked many of the managers (this was most pronounced at the beginning of my IRS career as well as the end of my time there: the in-between years were better). The managerial abuse was insane, and I knew I needed to leave for my mental health. Once I started my family, I left IRS and applied for my enrolled agent license (I had the requisite experience to apply without having to take the exam).

I was awarded my license in 2013, and I’ve been in good standing ever since. Here is some of what I’ve learned from being an enrolled agent.

  • Maintaining my license is pretty straightforward and fairly inexpensive. I complete the majority of my 24 hours of continuing professional education (CPE) on CPA Academy, one of the few websites that offers a lot of free classes that count toward CPE. There was a brief, shining moment during the Trump administration, when renewing my tax preparer ID number was free (there is no law that requires IRS to charge fees for these numbers), but that ended with Biden’s administration. There is a $30 annual fee to renew the tax preparer ID number, and I also pay an enrolled agent fee once every three years ($140). So, my average annual costs for maintaining my license is around $80.
  • Tax preparation is my least favorite part of taxes. I liked it when I initially began as an enrolled agent, but now I don’t do it at all. I prefer resolving tax discrepancies, or providing tax advice. Being an enrolled agent helped me learn what I really enjoyed about taxes, and which parts are better left to others. I learned that there are some people that love preparing taxes, and I don’t cross over into their territory.
  • Most tax work is underpaid, so it’s a good idea to work for yourself. You may not get the volume of customers you’d expect by working through a major tax company, but you earn more. With my expertise, I got an offer for a part-time senior tax consultant earning (drumroll please) $25 per hour. Not bad for part time work, and the ease of being an employee (no 1099-MISC payments, so less bookkeeping work for me). But, as someone that doesn’t need immediate income, AND as someone that has a client roster that pays $30+ for a half hour of my time, it wasn’t worth it.
  • Being an enrolled agent is a fiduciary-level role. You have to put your client’s interests first, and you are bound to the same ethical standards as most financial advisor/consultant roles. Just because you haven’t completed any of FINRA’s exams doesn’t mean that you’re able to bypass those standards. You are required to operate ethically at all times (both when working with clients and during your off-time).
  • You’re one of the few roles that can adequately represent people at the US Tax Court. I didn’t learn about this until I had been an EA for a while, but US Tax Court allows non-attorneys to represent clients in court, so long as the non-attorney has passed the Tax Court’s admission process. Being an EA offers a lot of credibility to your application to represent people in tax court. If you’ve always wanted to know what it’s like to work in a legal capacity, being an EA can position you to have this experience.
  • This job is what you make of it. You can do so much with this license: tax preparation, tax consulting, tax resolution, digital product creation, webinars & other instructional sessions, keynote speaking, tax research, and so much more. I have seen people pivot their EA license into all sorts of fascinating careers that go beyond the typical things we think of when talking about tax licenses. Your career is limited to your imagination.

Those are just some of the things I’ve learned from 10 years as an enrolled agent. So tell me: are you familiar with EAs? Would you be interested in getting this license? Let me know your thoughts below!

It’s Back-To-School Time! 7 Money-Saving Tax Tips for Parents

Parents, you are probably tired of the many back-to-school ads, endless emails from administrators, and registration fees for the myriad activities that your children have. For once, wouldn’t it be nice to SAVE money, as opposed to spending it?

As a parent, I feel your pain, and I’ve got some tips that may give you a little relief. For starters, children are costly, and the costs will only increase as they get older. In order to prepare our children for the world they will have to navigate as adults, we must invest in them emotionally, time-wise, and yes, financially. But, even with rising costs, it’s possible to save money, and even put more money in your pocket. Here are some ideas that can help you save money as you prepare for your younger and/or older children to return to school.

  1. Get familiar with the tax credits that are relevant to parents. It’s wiser to know the range of what’s available than to hope that your tax software (or tax preparer) will automatically know what benefits are applicable to you. At the beginning of every calendar year, remember to check out IRS.gov for information about tax credits, and then remember to check it at the beginning of every school year (like, now). For tax credits specific to parents, click HERE.
  2. Remember to separate the business from the personal. If you run a home business, then make sure that your business assets are “exclusive” – only used for the business. Please disregard all of those claims by scheming “tax gurus” and “entrepreneurs” that advise you that you can write off any and every item that you buy. The burden of proof for business expenses is “ordinary and necessary” (and sometimes reasonable is thrown in there). Yes, cell phones are necessary, but the phones that you purchase for your children who do not work in the business aren’t necessary to your money making operation. I hate to fear monger (but I suppose it isn’t mongering if it’s factual?), but IRS plans to hire (and has begun hiring) many thousands of employees, specifically for audits. Get your children their own cell phones, their own computers, etc., – if you are audited, and the auditor determines that any of your assets were not exclusively for business use, you may end up repaying IRS for any tax write-offs relevant to those assets. (If you need help setting up tax strategies that save you money and shield you from audits, contact me)
  3. Purchase school items on tax-free weekend (if applicable to the state where you live). If you want to bypass taxes completely, then tax-free weekend may be a good time to do so. Figure out when this occurs in your state. For some states, it has already occurred, but if you’ve missed it, remember that you can always plan for next year. Research your state to see what qualifies for the tax exemption (simply Google your state’s name and “tax free weekend”). You probably won’t care about this tip if you live in Alaska, Delaware, Montana, Oregon, or New Hampshire, since tax-free weekend is every weekend where you are (these states have no sales tax).
  4. Feel free to donate to your child’s school. The same rule that allows you to deduct the value of items donated to charity also applies to donations to schools, museums, and other nonprofit organizations. Always check IRS’s website to determine if an organization qualifies as charitable. If your children’s schools qualify, then you may be able to deduct items that your children will also benefit from (score!)
  5. Mind your memberships. The enriching things that you do for your children can be tax-deductible, so long as the organizations are nonprofits. So that museum membership that exposes your little ones to art, culture, and history may have multiple benefits for you (check with the museum to see how much of your membership cost is tax deductible). That same membership that your children enjoy may have perks for adults, like free exhibit tickets, exclusive invitations to gala events, and discounts to other businesses and service providers in the area. Not sure which museum is best for membership? Start with the North American Reciprocal Museum (NARM) Association, where you can quickly look up member institutions near you, and see what benefits they offer. If your nearby museum is a member, then you can get free admission to other member museums (this is great for when you’re traveling).
  6. Take your time with your (and your kids) W-4. For children that are working, remember to help them fill out a W-4 properly, so that they won’t get hit with a tax bill. A little known fact is that when your children get their first jobs, they will have to fill out a W-4 and possibly a comparable form for state withholding purposes (if you’re subject to state income tax) because taxes don’t care about your age. *If* your children are employed part-time, many people (friends, teachers, and employers) will tell them to write that they are”exempt” on the form. This is a TERRIBLE idea, especially since it doesn’t teach them how withholding is calculated and deducted from their pay. Also, if they earn more than they anticipated (which can easily happen when they work during summer breaks or over holiday weekends), they may go beyond the ceiling for “exempt” income and end up with – yup, you guessed it – a tax liability. And, unless they plan to consistently earn below the poverty level (the threshold for “exempt” income), they’re going to need to learn about withholding at some point. No time like the present to learn about how wages are taxed. If you’d like me to create a video about how to complete a W-4, let me know, and I’ll try to create that for you all. Just select “Other” on the dropdown options and write “W-4” in the details.
  7. Check your state and local tax website for additional tax benefits. Every state will have different tax requirements and benefits, and all would do well to consider the tax obligations within their states. Further, if you live in a city that has local taxes, there may be some things you need to know in order to maximize your benefit and reduce your expenses (click here for a list of states that have local income tax). The best tip that I have for familiarizing yourself with the tax obligations of your state and city (if applicable) is to get a copy of your state and local tax return instruction booklet, and flip to the section for deductions and credits. See what they have: you may be entitled to more credits than you realized.

Those are my top 7 tax tips for parents. Do you have any tips that you’d like to share? Feel free to post it in the comment section below.

3 Things To Do In March For Financial Health

Welcome to March! As we get closer to the spring equinox, we can’t help but feel the freshness and the energy of “new starts”. While this may be the beginning of the next season, this is also the season for completion, specifically, the completion of major financial obligations, such as tax filing. For the month of March, here are three things you can do to ensure and promote your financial health.

  • Review your budget and see how you’re doing. If you set up a budget for the year, this is a good time to look at how you’re doing and make adjustments. I’ve found it’s best to look at the previous quarter objectively: don’t beat yourself up over financial missteps, just commit to doing better in the future, and move on. Looking at your numbers at this point is also good if you have a tax year that differs from the standard calendar (January to December). Fiscal year filers may find it useful to see what’s happening in March, as this is often their mid-year point, and as such, a good time to make big changes to ensure that they finish strong.
  • File Forms 1120S and 1065, as well as applicable Schedule Ks. This is the time to file tax returns for partnerships and S-corps (unless you’re on a different tax year schedule). Schedule Ks should also be filed at this point. If this doesn’t apply to you, then start gathering the financial documents needed to file your tax returns (especially if you file a 1040). Review those documents and make sure that the information that has been reported is correct.
  • Update your beneficiaries on insurance policies and retirement accounts. While you’re in the process of reviewing and reconciling, it may be a good idea to review all of your insurance policies and retirement accounts. Make sure that the correct beneficiaries are listed, and take time to read through the benefits available under each policy. It’s worthwhile to check these regularly, and confirm whether your comprehension is still clear and accurate.

That’s all for March. Do you have any financial moves you’re making this month? I’d love to hear all about it!

Can ChatGPT Help You With Your Money? Of Course It Can!

I was hesitant to write this post, because I suspect that most of us have been inundated with information about artificial intelligence (AI). When it comes to new technology, I think most people feel a combination of excitement and overwhelm. With all of the conversation surrounding the capabilities of AI, particularly, ChatGPT, it’s easy to get lost in the sauce and feel like it’s all too much, too fast. The potential to create new income streams is now more accessible than ever, but everyone is (likely) asking the same question:

HOW?

Overwhelm makes it hard to see how this technology can benefit us. But here’s a simple guide (not written by AI, funny enough) on using ChatGPT to help you with your finances.

  • Ask financial questions and get pointed, easy-to-understand answers.
  • Find the “gaps” in your financial plans
  • Develop plans for income generation
  • Have the technology create documents, templates or questionnaires that can simplify your financial organization
  • Create schedules, systems and strategies for money management

There are many other uses for ChatGPT beyond the few mentioned here, but these are good starting points for exploring the capabilities within the platform. The sooner you familiarize yourself with what AI can do, the more skilled you’ll be when it is more widely incorporated into our daily lives. And if you think that you won’t have to be bothered with AI infiltrating your world, or that the integration of AI into our daily lives is far off, here’s a video from 1995, at the beginning of the Internet era. Just because something starts off unclear, doesn’t mean that it won’t one day be our norm.

That’s all for today: look out for more ChatGPT content in future posts. Take care!

3 Things To Do In February For Financial Health

Hello February!

On my end, it’s been a rather . . . intense start to this new year. I’m looking forward to calmer days in the weeks to come. That being said, I want to encourage you all to continue taking steps to improve or protect your financial health, even when life is hectic. This month, I wanted to focus on a few things that can be done quickly and that don’t take a lot of time. Taking care of your finances doesn’t require a ton of time-consuming projects.

Here are three things you can do to stay on top of your finances in February:

  • Pull your free annual credit reports. Annual credit reports are a right. This website will allow you to get free copies of your credit reports from the three reporting bureaus (Equifax, Experian, and TransUnion) for free. Just because you pull the reports doesn’t mean that you have to analyze them today: put them aside until you have the time to review them. If it helps, schedule the time needed to review them, so this task doesn’t fall through the cracks. Also, Equifax is currently allowing up to SIX free reports per year for anyone within the United States (these extra annual reports will be available until 2026). So after you make corrections to your report, you can allow a month or two, then pull the Equifax report to see if the changes are displaying.
  • File Form 1096 for information returns. If you or your business made payments that should be reported on 1099s, 1098s, W-2s, and a number of other information returns, then you have to file this form. Depending on the number of forms that need to be filed, this may not necessarily be a quick task. But it’s the beginning of the month: if you do paper mailed information returns, it’s still early enough to order this form from IRS (you can’t use the online version for submission). Form 1096 is the cover sheet for hard-copy information returns: you simply have to count how many of each information return you’re sending into IRS, then jot it down on the form. If you don’t have to file information returns, then of course you can skip this tip.
  • Move your savings to an account with a better interest rate. Bankrate has a listing of the current rates of both physical and digital banks offering high yield savings accounts. Do your research then move your coins.

That’s it for February: short and sweet, because your time is precious. Talk to you all soon!

3 Things To Do in January for Financial Health

Welcome to 2023! I hope that the end of last year and the beginning of this year was enjoyable for you all. In the Mid-Atlantic region, we were delighted to get some warmer weather just in time for the New Year. It was a pleasant change from the bitterly cold temperatures we had during Christmas weekend. As the clock switched from 2022 to 2023, there were many things to celebrate and appreciate: I count all of you, dear readers, as blessings.

To start your financial year right, here are a few things that you can prioritize for January. It’s early enough to get a great headstart on a lot of tasks that can feel overwhelming once the calmness of the holiday break transitions back to business as usual.

  • Continue refining your financial vision and commit to eliminating any habits that don’t serve your financial health. I’d advise you reject the New Year resolution mentality (unless it works for you: in that case, do it!) If resolutions haven’t been successful for you in the past, it’s time to try something different. Instead of coming up with a large, dramatic change for the year, why not just spend a little time refining your vision for the year (I discuss this vision in December’s financial health recommendations). Even if you did a great job of creating your financial vision last year, or in other years past, it’s still a good exercise to review what’s working, see what isn’t working for you, and make sure what you’re currently doing is putting you on the path to what you desire. If you identify any sabotaging activities or habits, commit to eliminating the one that is easiest to drop. If you focus on dropping a simple but damaging habit, then you can get a quick “win” that gives you the momentum to take on bigger challenges as they arise.
  • Download a tax calendar and start putting the dates on your digital and paper calendars now. It’s so easy to pull up the calendars, print them, and forget them. Don’t do that! You can find IRS’s calendar here. You can find additional federal tax calendars for specific professions and businesses here, and you can search for “tax calendar” on your respective state and local websites to see additional dates that need to be recorded on your business and personal calendars. If you pay a financial consultant, accountant, or tax preparation service to manage your numbers, you can help them to help you, by knowing when certain payments or forms are due to be submitted. Little known fact: one of the penalties that IRS regularly enforces is failure to file timely, and it is one of their heaviest (non-criminal) penalties. You can avoid it just by keeping up with the dates!
  • Pay your last estimated tax payment for tax year 2022. This payment is due to be submitted by January 17 this year. Use Form 1040-ES to submit it. If you had a particularly successful final quarter of 2022, consider adding a little more money to your payment, to help prevent underpayment penalties.

Those are the three tips for January, just in time to help you all hit the ground running! Have a great day, and I’ll talk to you all soon.