Massage & Bodywork

January | February 2014

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By William J. Lynott 8 Things You Need to Know About Money Money, and your ability to manage it, can make or break your business. Here are tips for becoming a better manager of the money flowing into your practice. 1. DON'T OVERPAY YOUR QUARTERLY ESTIMATES It may feel satisfying to discover that Uncle Sam owes you money at tax time, but don't be fooled. The IRS gets the last laugh when you overpay your quarterly estimates, because you've handed them an interest-free loan at your expense. "The least expensive way for you to pay your tax liability is to try to have estimated payments come out as close as possible to the amount owed," says certified public accountant Jay Blumenthal, from Abington, Pennsylvania. 98 massage & bodywork 2. DON'T PAY YOUR INCOME TAXES BY CREDIT CARD Should you take advantage of the payby-credit-card program now offered by the IRS and a number of states? On the surface, this option may seem attractive to some therapists. It enables you to postpone your payment, and even pay in installments to the credit card company. Here's the catch: you'll be charged a "convenience fee" of about 3 percent of your tax bill. This is in addition to any interest charged by the credit card company for installment payments. The bottom line: don't do it. january/february 2014 3. PASS UP CREDIT LIFE INSURANCE Credit life insurance is expensive— more than most other types of insurance. Although such a policy does offer some protection to the borrower, the prime beneficiary is the lender. If you die before you pay off the loan, the proceeds of the policy go directly to the lender. Nothing goes to your estate, even though you paid the premiums. Most financial advisors advise against credit life insurance.

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