​Preview in browser | Adulting | Forwarded to you? Sign up here. | Archive | Issue #106, Week 24, 2024​
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👋🏽 Hello, Future You.

This is a seasonal weekly note about money hygiene for values-driven independent workers and business owners. I want the future you to be set up RIGHT.
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🧠 On my mind.

• My hate for and reliance on the Apple ecosystem.
• Freshbooks v. Quickbooks.
• How do I stop looking at my phone?
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🧐 Money Mindset.
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​👓 New Biden administration rule would ban medical debt from credit reports. (Entrepreneur)
​👓 Your Freelance Taxes May Increase with Student Loan Forgiveness Key Facts About Freelance Taxes and Student Debt Relief. (Freelancers.com)
​👓 Women Are Rebranding Their Retirement Eras. (LinkedIn/Ellevest)
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☑️ LL Money Do.

Use your accountant for real-time estimated taxes.

Estimated taxes are due on Monday, June 17th.

Pay your accountant to do estimates for you. If you don't have an accountant, get one.

I recommend this for tiny empires like yours because the coupons you get when you close the previous tax year are based on that year's income. Your income fluctuates year-over-year. Those coupons might not match what you are on track to earn this year, which means you may not be paying the right amount. You want to eliminate surprises.

It's the worst to have coupons based on $50k, when you are on track to net $100k.

My rule is to give the IRS or State Revenue Dept only what they should have. I loathe refunds. They mean those agencies were holding on to money that could have earned interest elsewhere or invested in business things I needed.

I digress.

Unless you are feeling solid about your 2024 net-to-date, ask them to do estimates for you. If they resist (some do), tell them your income is not tracking compared to 2023, and you want reassurance that you are allocating cash correctly.

Here are some notes before you tell your accountant your books are ready for review. Your goal is accurate as possible. Sub-hygiene note: be an excellent client to your accountant.

• Your books need to be reconciled against your most recent bank statement (on or around May 31st).
• Make sure all your transactions are categorized correctly.
• If there are transactions you have questions about, make a note and ask about them.
• If you purchased something over $500 with a useful life of more than a year, like a computer, note that and make sure your accountant knows about this.
• Remember personal things that may impact your overall tax liability - have you converted an IRA to a Roth? Did you sell a house? Did you win the lotto? Include these in your notes.
• Give your accountant a couple of weeks. Do not be the person who submits something to them today and expect a reply on Monday. They have other clients who are asking them for the same thing. Accountants need lead time.

Lastly, if you don't have online accounts with the IRS or your state, get them and use them. It's good practice and great to have your whole papertrail accessible electronically. At the very least, PDF your confirmations and save them so you have your papertrail.
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⏰ Reminder.

I was offline for a day this week, and during that time, almost $2k of fraudulent charges were made on my credit card, mostly for TikTok items and gift cards. I was notified via text, I locked my card immediately and asked for new cards to be sent. Most importantly, I was credited for the fraudulent charges within one business day.

Anyway, use your credit card, not your debit card. (#104)

🗓️ Important dates.

• June 17, 2024: Q2 estimated federal and state taxes are due.
• September 16, 2024: Extended returns due for partnership (including LLCs) and S-corporation returns.
• October 15, 2024: Extended personal returns (Form 1040) and C-corporation returns are due + contributions to solo 401(k) plans or simplified employee pension (SEP) plans for 2023 by self-employed if you received a filing extension.

Your fan,

LL
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