Sean Pyles

So now you've gotten organized and you keep it totally separate, right?

Are you doing any commingling nowadays?

Proud of you.

Maybe you need to hire a new accountant, Elizabeth, because that's a pretty big oopsie.

Yeah, how are you going to make it right for this year?

The year where the issue happened.

Are you still working with them?

Okay, good.

Yeah.

So Elizabeth, that's a really jargony term.

What is first-time penalty abatement?

Okay, well, now let's get to the second part of our listeners question about preparing for taxes with a Roth IRA and a high yield savings account.

Elizabeth, kick us off with the IRA side of things.

And since we're all about reducing your taxable income on this show, it's important to know that a traditional IRA can help you do just that dollar for dollar depending on your income and your filing status.

So this in turn could reduce your tax bill for the year, which is great.

So if you're a contractor and you want to save for retirement and potentially pay less in taxes, consider funding an IRA.

Now let's turn to that high-yield savings account.

Unfortunately, our listener will likely have to pay federal and maybe state income taxes on the interest accrued in these accounts.

This is the downside of getting that nice yield on your savings.

Yeah, I was very lucky to put a lot into my Hiled Savings account last year.