Most of the time I write about how to improve your physical health, but today I want to talk a little bit about financial health. Now that we are beginning the new year, and new decade this time around, we have to start thinking about our finances a bit. On that subject, our taxes for last year still need to be paid – this is very scary for a whole lot of people. My goal is to put your mind at ease a little.

I know the tax form can be very intimidating, but there really isn’t anything to be scared of when you know how to calculate tax. You should do a quick estimate so you know what to expect when you start doing the long form or go to your tax man.

The first step to calculate income tax is to figure out how much money you made. You should have statements from your employer and any investments or interest you earned. Next you have to determine your deductions like charity and mortgage interest. Determine your taxable income by subtracting your deductions from your total income. From there you look up your tax on a tax table. After you know the tax you owe, subtract credits like the credit for children and add in any penalties to get your final number. With any luck, you will have paid in more than you owe and the government will be sending you a big fat refund check.

Now that wasn’t so hard was it. Try not to get stressed about your finances becase that will hurt your physical health. When you are ready to do your taxes, check out some of the online income tax software programs. They are way cheaper than going to a tax professional.

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