Taxes are an emotional arena. If just reading that sentence makes you want to shut your computer or go look at social media, I get it! We can’t think when we are afraid or when we are angry, and my hope is that by reading through these tips, you’ll be able to love taxes. Okay, that may be aiming a bit high; I truly hope that you’ll feel more impowered and able to have taxes in their right place where they are neither ignored nor obsessed over. Let’s talk about why taxes are a good thing, tackle the fear, and then go from there.

Though many reading this are Americans and I’m a tax preparer in America, I’ve tried to make these tips universal.

1—Don’t let Anger be in the driver’s seat. Many people come to my desk frustrated or angry that they owe anything.  You may not ever get to benefit from the taxes you pay. Or you might live in contexts where corruption is real and rampant and taxes aren’t going to help the people who should be recipients. While some of that may be valid, I like to consider why taxes are a good thing:  I love roads, schools, fire protection, schools, and airports. Ideally, taxes make these things happen; taxes are not a curse. You may not agree with all of the ways our governments spend money, but you would agree with a lot. Also, you have probably benefited from some of the resources I’ve listed without having paid into the country who provided them 😊!

2—Don’t let Fear be in the driver’s seat. Taxes can feel overwhelming and complicated. Here’s the good news: mistakes can All Be Fixed. You can amend. You can even amend an amendment. I share examples of this on Global Trellis podcast. 

3—Have a point person.  Often, you’ll need a point person in your passport country to help with filing and gathering physical records. If you don’t have one, reach out to supporters! Because this may be an area of stress for you, it’s hard to imagine that some people (like me) don’t find this stressful and may even find helping people with taxes fun!

4—Know where you owe. You may need to pay taxes in multiple countries, for instance, where you reside and where your “home base” or tax base is. Because the systems may be rather different, have people who can answer your tax questions in each country you owe taxes.

Now that we have taken mental steps to disarm the anger and fear and put a few basic pieces in place, let’s be productive.

5—Do your taxes. In the US at least, there are two penalties: one for not filing a return (even if you file without including any payment owed), and one for not paying what you owe. The FAR greater penalty is for not filing. The fine is much smaller for not paying. File something, even if you have to amend it later. 

6—Pay something! Don’t hide. If you owe money and feel overwhelmed, start chipping away. It’s like any big task, once we take a step towards tackling it, it feels less overwhelming. Plus, once you start, you are helping lessen the fines, and you are helping diminish the scariness of it looming over you by starting to tackle it. 

7—Get help if you have any complications. Maybe for a year, hire someone to see how they do it, and see if you or your point person could do it in the future. In particular, you might want help if you have rental property or if you have a side gig like a small business. Yes, tax prep help can be expensive. But we spend money on going to the doctor and on an auto mechanic because we don’t know how to do those things. Budgeting for tax preparation can be similar. This might be one of those situations where you would do better getting help. Plus, getting help will bring you more peace and likely more correctness to your tax return.  (Some of my clients come because they want peace and pay for it because it is worth it to them.) 

8—Get advice before making major decisions. Big decisions can include selling property, liquidating a retirement account, or selling large amounts of stock. I share helpful examples on the podcast interview with Bernie and Amy.

9—Have a system. Some of you are running a small business or are earning income that helps your family. Have a system for keeping track of receipts and income; it doesn’t matter what system. We created a spreadsheet for you to download and use and a short ten-minute video to explain how to use the spreadsheet. Link to the spreadsheet and Link to video explaining the spreadsheet

10—Keep track of property improvements. If you own property, keep track of what you spend improving it. Both receipts or best guesses work in most cases. Also, this might be worthwhile for renters to do. Many renters front the bills for small improvements or even large appliances (thinking of places in Europe where rentals come without kitchens, assuming the renter will do the hard work (and costs associated).

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With so much of life: know better, do better. If you can’t go back, at least you can start good practices moving forward. The Pharisees were trying to trap Jesus when they asked if they should pay taxes, and he said, “Give to Caesar what is Caesar’s” (in Matthew 22:15-22 and Mark 12:17). If Jesus was talking about taxes, we can too. As I said at the beginning, I know that taxes can be such a source of stress for people living cross-culturally. My hope is that these ten tips help to alleviate some of the stress, so that your energy and focus can go to your ministry and the people you’re called to serve.

Elizabeth was also a guest on Global Trellis: The Podcast offering more practical tax tips. Listen here.