How One NZer Got $15k From IRD

Hey team,

Before we get into it, last chance to join us to learn about investing for financial freedom!

Free webinar, tomorrow, taking your questions live, DO NOT MISS IT.

You can sign up right here, francescook.co.nz/freedom. Invite your friends too, so we can all level up together.

I think the most reliable way I can make someone grimace is by bringing up tax.

And the IRD? Well, they’re somewhere between the police, and a maths teacher, and we’re not too comfortable with either of those.

So many of us just ignore the issue of tax as much as we can.

And that can cost us so much money.

Which is why I just had to get Baqir Hussain on the podcast.

He’s chartered certified accountant with yonks of experience, the founder of Finex Accounting, and has both a book and a newsletter dedicated to making this stuff simple for us.

Thank you, sir!

Boy does he have stories.

Stories of people who got back thousands they didn’t know they were owed.

Stories of people who cost themselves thousands, because they didn’t realise how big a mistake they were making.

One of the big ones with a client with kids, who didn’t realise they were eligible for Working For Families payments.

Now what I also didn’t realise, is that you can also go back in time to claim these! So Baqir helped him claim for four years of payments, which added up to a cool $15,000.

Which, frankly, I don’t know anyone who wouldn’t want that to land in their account.

People who work from home, even as a side hustle, have gone to Baqir before, and been shocked at the amount of “home office” expenses they’re missing out on.

People who donate to charity often are reluctant to claim back tax on those donations, without realising they can use it to supercharge their donation - get the tax refund and then donate it all over again. Why not?

Look, the cost of living is horrendous, and these tax systems are built deliberately, in order to support people who need support, and encourage the behaviour we want in our country.

Don’t get me wrong, by no means is it a perfect system.

But let’s use the system we’ve got.

On the other side of things, are people who get into hot water with a tax bill, and hope that closing their eyes to the problem will make it go away.

Which… is a very expensive strategy.

Baqir had a client who ended up owing QUARTER OF A MILLION DOLLARS, much of it from interest and penalty fees, after the debt was ignored.

Guys, can’t lie, that one gives me secondhand anxiety.

Baqir started negotiations with the IRD, and says there are some fees that can be waived if you make a good case. Some others, you can’t.

So basically, try not to get into that situation in the first place.

But if you do, get a pro involved asap, because they could help you negotiate that amount down.

Overall, how do you get some more tax money in your back pocket, and how do you avoid getting nasty things like a “surprise tax bill”?

I had the most delightful conversation with Baqir on the latest episode of Making Cents, and you shouldn’t miss it.

Check it out on the latest Making Cents podcast on YouTube here, or get it in your ears through all the podcast apps, including Spotify and Apple Podcasts.

Want to know an underrated money hack?

Being comfortable with your own brand of weird.

And in the early years of my own financial independence journey, this was the biggest lever I was able to pull.

Ditching status symbols, not minding what other people were doing, and certainly not minding what they thought of what I was doing.

Because I knew I wanted to build something bigger. I knew it would mean living differently, at least for a while, until I could build the foundations I needed.

And I did.

So this week I sat down for the podcast and laid out why embracing my weird helped me build financial independence, and what you should do to find and embrace your own weird, too.

It’s out on Thursday, so make sure you’re subscribed on Apple Podcasts, Spotify, or YouTube.

Until next time.

- Frances

P.S. I’m a financial journalist of over 10 years, and qualified as a financial advisor, specialising in investments.

However, please remember that this newsletter is general educational information, and not individualised financial advice. If you’d like to talk to a financial advisor, I have a podcast on how to find a good one.