Anytime there is an opportunity to save money – why not take advantage? One way to stretch your dollars each month is by couponing. Couponing was all the rave a few years ago. Today it has proven to be less of trend but a way of life for many. It also helps you save on paying taxes – who knew?
Couponing Saves Taxes
When you look at couponing from a tax saving point-of-view, it’s a win-win situation. The Krazy Coupon Lady points out a few key facts that all shoppers should know. These three tidbits really stand out:
- Coupons can be used during tax-free weekends. The savings equal the difference between the retail price and the coupon discount multiplied by the sales tax. Now that’s saving!
- Money earned from coupons, or rebates, are considered discounts by the IRS and are not required to be reported as earnings. The same is true for credit cards that offer cash incentives or cash back rewards. Keep in mind that if you hit the jackpot in a sweepstake, you will have to report that money as other income.
- Discounts from coupons issued by retailers are first applied to the sticker price. Then the sales price is added. Therefore, the taxable amount of the item is reduced.
Let the Savings Begin
Now that you understand how coupons can help you save on taxes, you can now start couponing.
- Enroll in your favorite grocery stores’ loyalty card program and download coupons directly to your rewards card.
- Visit websites like coupons.com each month and download coupons that can be used in various retail stores. Additionally, you can register your grocery store loyalty card at coupons.com and load coupons directly to the card. You can also visit individual retailer sites, in which you are a member of their rewards program, and download coupons.
- Follow couponers and coupon sites online to get the latest on in store bargains and discounts.
- Pick up a newspaper on the first Sunday of each month. The first Sunday paper is filled with coupons you can use to purchase necessities such as paper and personal hygiene products.
- Attend a couponing class to learn firsthand how to start saving.
Starting off, you may not get your grocery bill reduced to $0.00 but you will leave the store with more cash in your wallet. Hope this inspires you to begin couponing, save on paying taxes and save some dough, dinero, coins, cash!