Are you in your 20s and confused by your taxes, debt repayments and other financial decisions? A CPA can file individual’s taxes for them and offer financial advice. Here is some information and advice to keep in mind to guarantee those in their 20s have the knowledge to succeed:
- Student Loans Repayment: Most individuals in their 20s have student loan debt accounting for a significant portion of their budget. Eradicating any non-tax-deductible debt, including student loans or lines of credit, should be the largest concern for individuals in their 20s.
- Savings: Purchasing a home or planning for a wedding is a large life event many experience in their 20s. If you are saving to purchase a home or pay for a wedding, a Roth IRA is a powerful saving tool, as all contributions can be removed at any time, tax and penalty free. Additionally, after the account has been opened for five years, up to $10,000 of your earnings can be withdrawn.
- Weddings: Although the winter may seem like a romantic time, do not forget to research the tax consequences. Tax law still includes a “marriage penalty” where you can be forced to pay more combined tax, yet others save in taxes. Add tax research to your wedding planner just to be on the safe side.