How to Talk to Your Family About Your Taxes
Talking about money with anyone can be awkward, but what about talking with your family? Those conversations hit much closer to home, making it even more difficult to talk with your loved ones about your financial situation.
Why does it matter? Couldn’t you just avoid talking about your taxes with your family? Well, you could. On the other hand, having open and candid conversations about your financial situation with your family could give you the support you need. Plus, you may need to coordinate details about your taxes with some of your family if they are dependent or heads of households.
Fortunately, talking about your taxes doesn’t have to be totally taboo! With some helpful tips and a little tact, you can talk to your family about finances and taxes.
Have Casual Conversations
Money conversations don’t have to be a big deal! Even if money has historically been considered a taboo topic, it can be surprisingly casual if you approach it right.
Ask a lot of questions and be transparent about your situation. Let your family know you appreciate any advice they may offer. If you have specific questions, ask away! After all, your family is here to help you and see you succeed.
What’s the easiest way to make talking about money less awkward? Talk about it more often.
Little by little, start the dialog about money with your family. Soon enough, you’ll find yourself discussing money as a regular topic.
Make it a priority to talk about finances regularly with your family. Bring up financial news topics and ask questions when they come up. Let your family know your financial situation is important to you, and they will understand and accept it when you bring finances into conversation more frequently.
When talking about your financial situation, honesty is key. While it can be uncomfortable to be vulnerable, it’s easier to be honest about your financial situation than dancing around the topic.
If you have a question for your family – ask it! If you want to share something you learned, share. In this case, honestly truly is the best policy. Plus, it really helps to avoid awkward and impersonal financial conversations.
Do What’s Best for You
Even the most well-intentioned family member can have disagreeing points of views. Plenty of financial topics, such as the economy, job market, and tax rates, can quickly become political. While this isn’t necessarily bad, these topics aren’t always appropriate for the setting.
If you find yourself in the midst of a politically charged conversation about money, do what’s best for you. Chime in if you feel comfortable expressing a varyied opinion, or choose to dismiss yourself from the conversation if you’re uncomfortable.
Accept that times and circumstances have changed. Depending on who you talk to in your family, they may or may not understand how much technology has changed the future of finances. For instance, you now have the luxury of using tax software to file your tax return every year. While some people would prefer to file their own taxes with forms from the IRS or hire a pricey accountant, tax software, like TaxAct, offers a useful and affordable midpoint.
Everyone has different opinions about money, but your personal situation is the only one that truly matters. Stick true to your beliefs, as you know your personal situation the best.