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Personal Finance from the Broke Perspective

7 Funny Tax Memes With Real World Lessons

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Funny tax memes
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Tax season can be one of the most stressful times for Americans. One of the best ways to decompress is to laugh about it. Tax memes can bring our blood pressure down, but also can shine light on some important tax lessons. Here are seven funny tax memes from which we can all learn something.

1. Not Understanding The Process

Parks and Recreation Tax Meme
Image Source: Facebook/Tax Memes

If filing your taxes has you confused, you’re not alone. According to Pew Research, many Americans are frustrated by the complexity of the federal tax system, and about half (53%) say its complexity bothers them a lot. No one teaches us how to file a tax return. It’s not a skill you learn in high school that you can apply in the real world later. Most of us are embarrassed, just like Andy Dwyer, that we don’t understand the process. Or we try to tackle our taxes on our own and make costly mistakes.

2. Not Spending Your Return Wisely

Meme about tax returns
Image Source: Facebook/Tax Memes

Do you feel like the minute your refund hits your account it’s burning a hole in your pocket? Too often we feel like these extra windfalls like a tax return are meant to be spent on things that we want. It’s money that you didn’t have before anyway, right? Actually, if you want to improve your financial health, it’s best to use your refund to pay down debt, add to your emergency fund, or invest. If your return feels more like beer money than a windfall, you may need to learn ways to maximize your return so that you can reinvest it wisely.

3. Trying to Find Loopholes

Cat tax meme
Image Source: Facebook/Tax Memes<span style="font-size: 16px;"> </span>

When filing your taxes, trying to find too many ‘loopholes’ or deductions can lead to serious problems, especially if you get audited by the IRS. When claiming deductions, make sure that you have the proper receipts and documentation. An accountant can help you through this process to make sure that nothing is missed on your taxes, which could save you money or increase your refund. That being said, there are no magic loopholes.

4. Feeling Like You Don’t Deserve Help

Funny tax memes
Image Source: Facebook/Tax Memes

You don’t have to be a millionaire to hire a tax professional. Choosing a tax professional can also seem like a daunting task. However, if you get help preparing your taxes you can maximize your return and prevent potential mistakes. You won’t be judged on your income, tax professionals are only there to help. They can also help you get organized and estimate what you might owe ahead of time so there are no surprises come tax season. You may find that with professional help, tax season is a little less stressful.

5. Not Submitting The Correct Forms

IRS tax forms
Image Source: Facebook/Tax Memes

There are so many tax forms that it can get incredibly confusing. You can use this IRS interview to determine what forms you need to submit with your tax return. Tax software like TurboTax also walks you through a list of questions to determine which forms you need to submit. The more complex your tax return, most likely the more forms you will need to include. By submitting the right information, you can avoid costly errors.

6. Falsifying Information

Bart Simpson tax return meme
Image Source: Facebook/Tax Memes

While it may be funny that Bart Simpson is creating false deductions on his taxes, doing so can have serious consequences. According to H&R Block, there are several ways that the IRS handles lying on your taxes. This includes fines, audits, loss of future tax credits, civil penalties, or criminal charges. As with all things, honesty on your tax return is the best policy.

7. Feeling Like You Pay Too Much

Funny tax memes corporations not paying enough taxes
Image Source: Facebook/Tax Memes

Do you feel like not everyone pays their fair share of taxes? A Center survey from spring 2023 found that about six in ten U.S. adults say they’re bothered a lot by the feeling that some corporations (61%) and some wealthy people (60%) don’t pay their fair share. According to Pew Research, about two-thirds of Americans (65%) support raising tax rates on large businesses and corporations.

Regardless of how you feel about your tax contributions, this doesn’t mean that you should not pay your taxes altogether. Failure to pay your taxes can result in hefty penalties. The same is true if you fail to file your tax return by the deadline.

How are you preparing for tax season this year? Do you use a professional to prepare your taxes?

How to Choose Between a Credit Lock and Freeze to Secure Your Identity

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Credit Freeze vs. Credit Lock to Protect Your Identity
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Both a credit lock and credit freeze can protect your credit report from being used for opening a new account or applying for a loan. If you’ve been victimized by identity theft, both are smart options. However, a credit lock vs. a credit freeze differ in their implementation. So, which one is right for you?

What Is a Credit Freeze?

A credit freeze is a free service guaranteed by law. When you initiate a credit freeze, most of your credit report will be limited. Lenders can’t evaluate your credit report until you lift or thaw the freeze. However, your credit report can still be viewed by companies responding to non-credit applications, your current creditors, debt collectors, and government entities. You can also still view your report if it’s frozen.

You can lift the credit freeze permanently or for a set amount of time if you are applying for a loan or a credit card. This can be as short as a day or a week, whatever you choose. However, with a credit freeze, you’ll have to lift it with each credit bureau individually. All bureaus handle lifting a freeze differently, so follow the appropriate steps for each one.

What Is a Credit Lock?

A credit lock is almost the same as a credit freeze but provides extra features and protections. Additionally, it can also come with a fee. You can initiate a credit lock with Experian, TransUnion, and Equifax:

  • Experian CreditLock is available for $24.99 per month
  • Equifax provides credit locks free to consumers through Lock & Alert
  • TransUnion includes credit file locking for both your TransUnion and Equifax credit files for $29.95 per month

Some features of credit locks include notifications when anyone requests access to your locked credit report, alerts when your information appears on the dark web, identity theft insurance, and fraud resolution. Of course, each bureau offers different services but these additional features can offer you further protections.

How Do I Initiate a Credit Freeze vs. a Credit Lock?

Initiating a Credit Freeze vs. Credit Lock
Image Source: Pexels

Initiating a credit freeze or a credit lock online can be as simple as a toggle on or off feature. You must sign up with each credit bureau to do so. You can also call each credit bureau or request a freeze or lock by mail. If so, you will need some accompanying identifying documents and information such as a recent utility bill, social security number, all your addresses in the last two years, your date of birth, and a government-issued ID.

When to Use a Credit Freeze vs. Credit Lock

If you suspect that you’ve been a victim of identity theft or your information has been compromised, both a credit freeze and credit lock are good options. However, a credit freeze is probably more appropriate if you don’t need additional features or don’t want to pay for a subscription. A credit freeze is also your only option if you are freezing the credit report of a minor. On the other hand, a credit lock can provide you additional protections and alerts. This can make dealing with the aftermath of identity theft more manageable.

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Here’s How to Get The Cheapest Price for a Tesla

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Budget car sales buying a Tesla
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Car sales on a budget don’t have to be boring! Are you dreaming of owning a Tesla, but don’t want to pay full price? The price of a Tesla depends on the model and add-ons, but the average cost ranges from $40,000 to over $90,000 brand new. You can stay on budget by utilizing budget car sales, discounts, and more. So, how do you get the best price on a Tesla? Here’s everything you need to know.

Buy Demo or Leftover Inventory

At the end of the year, car dealerships usually run sales, which works well if you’re on a budget. Car dealerships need to make way for new inventory so last year’s models and showroom demo cars are discounted. Demand for electric vehicles can fluctuate throughout the year, so keep an eye on prices throughout the year as well.

Buy a Used Tesla

Buy a used Tesla
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Many car brands are more affordable used, but used Tesla cars have been almost as expensive as their brand-new counterparts. This seems to changing in recent years though. The good news is that used Tesla cars will hold their value well so buying used is still a good investment.

Get a Federal Tax Credit

If you buy a Tesla, you may qualify for a clean vehicle tax credit. This can help you offset the cost. There are several steps you need to take to receive your tax credit. You could be eligible for up to a $7,500 credit. According to the IRS, at the time of sale, the seller must give you information about your vehicle’s qualifications. Sellers must also register online and report the same information to the IRS. If they don’t, your vehicle won’t be eligible for the credit. You also must meet the AGI requirements to qualify. However, it is important to keep in mind that President Donald Trump has plans to get rid of this tax credit, so this perk may not be around much longer.

Participate in The Referral Program

Tesla Cybertruck
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Tesla has a referral program where you will be rewarded if you refer friends or family and they make their first qualifying purchase using your referral link. Qualifying purchases include the Model S, Model 3, Model X, Model Y, Cybertruck, and Solar panels. According to Tesla, You can receive referrer benefits up to 10 times per calendar year. All referrer benefits will help you earn Tesla credits which can be used on supercharging, a new vehicle purchase, any outstanding balance from a service appointment in the Tesla app, Tesla Shop purchases, subscriptions, and upgrades. Loyalty benefits are also available if you have owned a Tesla and made another purchase.

Buy a Lower-End Model

If you don’t get all the bells and whistles or purchase a lower-end model, you’ll save a good deal of money. The Model 3 is already popular and is the least expensive model in Tesla’s line. You can also consider leasing or financing your purchase to meet your budget needs.

Navigating Budget Car Sales

Before committing to buying a Tesla, make sure to shop around, review your budget, and do your research. With patience, you can find a good deal on a Tesla. Are you in the market for a new car? What model of Tesla are you considering?

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