🤑 A guide to paying less tax in 2023

Saturday,
January 7, 2023

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The week in review

• The first trading session of 2023 was marked by familiar concerns. Traders remain wary of a potential recession, as well as the prospect of rising rates.

• The labor market continues to be robust, meaning the central bank will likely pursue more rate hikes in 2023. That puts pressure on stocks, and leads to selling.

• Oil prices continued their recent slide. Experts attribute this to concerns over tepid global growth.

For more economic news, visit On the Money — SoFi’s one-stop-shop for news, trends, and tips!

5 money-saving resolutions for the new year

It’s time once again to make a fresh start. Along with promising to eat better this year, many of us are also examining our personal finances. How can we manage our money better in the days ahead?

Here are five resolutions to consider:

1. Find a Savings Buddy. Economizing can be easier when doing it with a supportive kindred spirit. If you’re choosing who to have coffee with, maybe find the person more willing to make coffee at home than spend $7 on a fancy cashew milk latte.

2. Schedule Automatic Transfers. When your paycheck hits your checking account, pay yourself first (yup, before you buy that new shower diffuser from TikTok). To help, SoFi offers the use of Vaults, through which you can automatically set aside a fixed amount on a regular cadence.

3. Pay Off High-Interest Credit Cards. Don’t let that interest rack up! Credit card interest rates are notoriously high, with rates averaging just over 19% in November of 2022. Create a plan to become debt-free for 2023 and prioritize paying off high-interest cards first.

4. Find a Side Hustle. If you have any free time at night or on the weekends, then you can freelance or work some other type of side hustle. Even renting a room on Airbnb could put hundreds or thousands of extra dollars in your account every month.

5. Buy Generic. Many generic products are the same as name-brand products without the fancy label. Ask yourself which products really require the name brand, and which could present you with a great savings opportunity.

If you love these five goals and want 32 more, here’s a robust list of resolution ideas for 2023!

This week’s top stories

Here’s a New Year’s resolution we can all get behind: pay less in taxes.
In response to record inflation, the IRS has made several updates to the tax code, which could save you a bundle in the 2023 tax year. Here’s everything you need to know.
Read more >>

Only 13.7 million cars were sold in 2022, marking the worst sales total in over a decade. What’s in store for 2023?
We’re breaking down how different automakers stacked up against each other, and whether 2023 will be a good year to buy a car.
Read more >>

Home improvement, repairs, and maintenance can be a hammer to the thumb for homeowners. Take these 3 steps in 2023 to avoid the pain.
It’s all about the emergency fund, monitoring, and maintaining.so
Read more >>

Deep dives from SoFi Learn

While tax audits are seemingly rare, they do happen for various reasons. Learn 11 red flags that can trigger a tax audit from the IRS.
Even the most fastidious of filers can get sweaty-palmed at the mere thought of receiving an audit notice from the IRS. So you likely want to do your best to avoid going through that process.
Read more >>

Water costs can take a bite out of your budget, and wasting H2O is bad for the environment too.
Learn 12 ways to save on your water bill and lower your monthly expenses.
Read more >>

Why an emergency fund should be your financial priority
Life can be unpredictable, and financial setbacks can crop up at any time. Prepare yourself in advance to prevent derailing long-term financial goals.
Read more >>

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Diversification is not a guarantee of protection from loss. SoFi can’t guarantee future financial performance.

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Important: Bitcoin and other cryptocurrencies aren’t endorsed or guaranteed by any government, are volatile and involve a high degree of risk.

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SoFi members with direct deposit can earn up to 3.75% annual percentage yield (APY) on savings balances (including Vaults) and 2.50% APY on checking balances. There is no minimum direct deposit amount required to qualify for the 3.75% APY for savings and 2.50% APY for checking balances. Members without direct deposit will earn 1.20% APY on all account balances in checking and savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 1/4/2023. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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