Filing a Final Tax Return

Losing a loved one to death is one of the most challenging circumstances in life. The IRS will require the deceased person’s representative to file a final tax return to add insult to injury.

My father passed away early in the year, and I had not completed his tax return for the previous year. I had to file it for him. A year after his passing, I had to file a final return for him as he had received social security and retirement benefits in his last year of life. These were emotional experiences for me. If you are in this position this year, you have my sincerest sympathy, and I hope this information makes the experience less stressful for you.The return must be filed by your loved one’s surviving spouse or representative.

If you are the one filing, follow these steps.

  1. Gather all tax documents for your loved one as you would prepare your tax return.
  2. All income received up to death must be included on the final tax return. If the deceased person was elderly, their income likely included: (1) retirement benefits, (2) social security, (3) IRA distributions, (4) Interest and dividends, and (5) investment Income
  3. If they were younger and still working, they will receive a W-2 or 1099 from those they worked for in the final year of life.
  4. If filing electronically, you must check the box “Taxpayer Died Before Filing.”  If filing a paper return, write “Deceased” along with the taxpayer’s name and date of death across the top of the return. You do not need to include a death certificate or other proof of death.
  5. If the deceased person was married, the surviving spouse can file Married Filing Jointly or Married Filing Separately for the year of death.
  6. All credits and deductions for the deceased person were eligible for still apply.
  7. The appointed representative must sign the return for the deceased individual. The spouse must also sign the return if the person has a surviving spouse. If no representative was appointed and the person did not have a surviving spouse, the person handling the estate should sign the return as a personal representative.
  8. A personal representative should complete Form 1310, Statement of Person Claiming Refund Due for a Deceased Taxpayer. A court-appointed representative can skip Form 1310 but should include a copy of the court order showing their appointment.
  9. If the deceased person is due a refund, the representative must agree to distribute the refund to the person’s heirs in accordance with their will. If the deceased person has a tax liability, the personal representative must pay it from the estate asset.

You can use the IRS’s Interactive Tax Assistant (ITA) to help you determine how to file for your specific situation:  https://www.irs.gov/help/ita/how-do-i-file-a-deceased-persons-tax-return

If you have not yet filed your tax return, check back next week for tips on filing your return yourself.

Gig Workers & Taxes: Filing a Schedule C

Are you among the 73 million Americans who work in the gig economy? If you drive for Uber, deliver meals for DoorDash, shop for others through Instacart, design websites on Fiverr, pet sit for friends and neighbors for a fee, take on side jobs through Upwork, or engage in any other type of side hustle work, then you are part of the gig economy. If you are one of these workers, you may wonder (1) if you have to claim these earnings and (2) how you claim these earnings.

Many individuals who work in the gig economy also have a conventional job that provides them with a steady salary or wages. They obtain a W-2 form from their employer and must file a tax return. They may overlook the smaller amounts earned from their side jobs, but this would be a mistake.

Gig workers are considered independent contractors or freelancers by those who hire them rather than employees. As such, they do not receive W-2s at the end of the year. No taxes are withheld from their income, and the companies they work for do not pay a portion of their required Medicare and Social Security contributions.

The IRS considers earnings from side hustles or freelance work as self-employment income. For this income, you will file a Schedule C, Profit or Loss from Business. This form will be part of your income tax return, and the Net Profit or Loss will transfer to your 1040.

Each employer you worked for as an independent contractor should provide you with a 1099-NEC form. If you have earnings of $400 or more reported on these forms, you must file a Schedule C. This form requires you to sum up your total income and write it in Line 1. You can add up your income on Schedule C if you have worked multiple freelance jobs.

In Part II, you will need to list all the legitimate expenses for your business. This is crucial to ensure that you pay the correct amount of taxes and do not overpay.

  • Your expenses may include the costs incurred while driving your car to transport passengers or make deliveries. You should keep track of the miles you have driven and use the standard mileage rate of 65.5 cents per mile set by the IRS. You can enter the total miles driven on Page 2, Part IV, and then multiply the total mileage by .655 to get the exact value, which you can then enter on Line 9.
  • Advertising and marketing expenses, such as creating business cards, fliers, a magnetic sign for your vehicle, or a website, are entered on Line 8.  
  • Contract labor comes from hiring someone to assist you with jobs. If you are a freelance web designer, you might subcontract the creation of a logo for your client to a graphic designer or artist. If you had those expenses, enter the total on Line 11.
  • Insurance for your business is entered on Line 15. Typical insurance charges are surcharges added to your vehicle insurance due to making deliveries; errors and omissions insurance if you provide a professional service such as tax preparation; property insurance to cover a loss of tools or equipment for fire or theft; and general liability insurance.
  • Commissions and fees paid to Fiverr, Uber, Upwork, or another job matching service are entered on Line 10.
  • Payment processing fees. If you use PayPal, Venmo, or another service to process payments, you are paying them a percentage of the charges for their service. If your clients pay by credit card, then your credit card provider will deduct a service fee. These fees are counted as Other Expenses entered on Line 27a. You can detail these expenses in Section V. 
  • Cellphone and internet service charges are deductible if used primarily for business. These expenses are typically included on Line 27a and in Section V.
  • Supplies used to operate your business are deductible. Office supplies are standard for most companies. A food delivery driver might also invest in insulated bags to keep food warm or cold, a pet sitter might purchase pet treats and toys, and a handyman would buy tools and hardware. Keep track of these and deduct them from Line 22 on your Schedule C form.

When you have entered all your expenses, total them on Line 28. Subtract the total from your income to determine your Tentative Profit. For most independent contractors, tentative profit is the same as Net Profit. However, those working from a home office may elect to deduct some home office expenses, lowering your taxable profit but requiring additional work.

Cost of Goods Sold is calculated in Section III, but as gig economy workers do not commonly incur it, we will not include it in this post.

Your Net Profit on Line 31 should be transferred to Line 3 of your 1040 and also to Line 2 of your Schedule SE. Schedule SE is used to calculate your self-employment tax. Your tax software or your tax preparer will do this automatically. Your role is to accurately track your income and deductible expenses from your side hustles so that your tax liability will be accurate.

Check back next week for another Tuesday tax tip.

Do I Have to File a Tax Return this Year?

If you are currently retired and living on a small, fixed income or barely making enough money to support your family, you might wonder whether you need to file a tax return this year. The answer is most likely “Yes.”

In 1789, Benjamin Franklin famously said, “In this world, nothing can be said to be certain, except death and taxes.” That has not changed much. Filing a tax return is a requirement of life for nearly every American.

You are required to file a tax return if:

  1. Your gross income was greater than the applicable standard deduction for your filing status.
  2. You had self-employment income of $400 or more.
  3. You owe taxes.

Keep in mind that gross income is not just income earned from working a job. It includes social security and retirement income, IRA distributions, interest and dividends, capital gains, and any other sources of income you might have.

Let’s look at the example of a 90-year-old widow whose social security and retirement benefits total $23,400 annually. Additionally, she received $157 in interest on her savings and a dividend of $384 from stocks. Therefore, her gross income is $23,941. This amount exceeds her standard deduction of $15,700. Consequently, she must file a tax return for the year. It is likely that she had taxes withheld on these incomes and that she is entitled to a refund. If so, filing is not only required, but it is beneficial.

Even if you are not required to file a tax return, you will want to file if (1) you are due a refund on taxes withheld or (2) if you are entitled to claim a tax credit. The most common tax credits are:

  • Earned income tax credit
  • Child tax credit
  • American Opportunity Tax Credit
  • Credit for Federal Tax on Fuels
  • Premium Tax Credit
  • Health Coverage Tax Credit
  • Credits for Sick and Family Leave
  • Child and Dependent Care Credit

If you are still unsure whether you have to file a tax return, you can use the IRS’s Interactive Tax Assistance (ITA). It has an Interview Tool to help you figure it out. The interview is estimated to take 12 minutes to complete. Remember that the tool is only as good as the answers you provide. Access the interview tool here: https://www.irs.gov/help/ita/do-i-need-to-file-a-tax-return

Free Tax Filing Options

Did you know you may be eligible to file your taxes for free? Several free filing options are available, depending on your age, state of residency, and income. You can find a free tax filing option if your Adjusted Gross Income (AGI) is $79,000 or less.

In order to move forward, you will need to determine your AGI for 2023. This information will help us explore the best options available and make informed decisions. Let’s take a moment to calculate your AGI so we can confidently move ahead.

Step 1:  Calculate your total income by adding up all sources of income you receive. Typical forms of income may include:

  • Wages
  • Retirement income
    • IRA distributions
    • Dividends
  • Capital gains
  • business profits
  • interest earned
  • Investment income 
  • Social security
  • Tips
  • Rental income
  • Dependent care benefits
  • Employer-provided adoption benefits

  • Medicaid waiver payments

    Step 2:  Sum up the adjustments made to your income. These adjustments may include: 
  • Half of the self-employment taxes you paid
  • Self-employment health insurance premiums
  • Applicable donations to IRAs
  • Student loan interest
  • Unreimbursed educator expenses

Your AGI is your total income minus your total adjustments.

IRS File Free

The IRS has collaborated with several tax software providers to offer free access to those who meet the requirements. Each provider has its own set of criteria for eligibility. Please visit the provider’s website to determine if their free service is available in your state. Below is a list of the IRS’s trusted partners and a link to their websites.

1040 NOWAGI < $68,000Any agehttps://www.1040now.net
Drake$17k<AGI<$68kAny agehttps://www.1040.com/
EzTaxReturnAGI < $79,000Any agehttps://www.eztaxreturn.com/
FileYourTaxes$8.5k<AGI<$79k< 65https://www.fileyourtaxes.com/
On-Line TaxesAGI < $45,000Any agehttps://www.olt.com
Tax ActAGI < $79,00020 – 54https://www.taxact.com/
Tax HawkAGI < $45,000Any agehttps://www.taxhawk.com
Tax SlayerAGI < $44,000Any agehttps://www.taxslayer.com/
Comparison Free Tax Filing Options

The IRS has a tool to help you determine which of these trusted partners is right for you: https://apps.irs.gov/app/freeFile/general/

  1. Go to IRS.gov
  2. Click “File your taxes for free.”
  3. Select “Explore Free Guided Tax Software”
  4. If you are a first-time free tax filer, select “Find Your Trusted Partner(s)” to find the right preparer for your situation. Or you may browse all the IRS-trusted partners.
  5. Once you use IRS File Free, you will receive an email from the company you used with a link to file for free next year.

Check back next Tuesday for another tax tip to help you decide whether to itemize your deduction or take the standard deduction.

Itemizing Deductions vs. Standard Deduction

When doing your taxes this year, it’s essential to ask yourself whether you should itemize deductions or take the standard deduction. The standard deduction has significantly increased over the past few years, resulting in fewer taxpayers benefiting from itemizing.

If your deductions exceed the standard deduction, you will reduce your tax burden by itemizing. On the other hand, itemizing is a time-consuming process that you may only want to go through if you know it is to your advantage.

For 2023, the standard deduction is:

  • Single taxpayer:  $13,850
  • Head of Household:  $20,800
  • Married filing jointly:  $27,700

If you are 65 or older or blind, your standard deduction is increased by $1,850 for a single taxpayer or head of household and $1,500 per qualifying spouse for married filing jointly.

Questions to Ask Yourself

You can make a quick assessment as to whether it is worth your time and effort to deal with itemizing deductions by asking yourself these five questions:

  1. Did I spend a significant portion of my income on medical bills and prescriptions in 2023?
  2. Do I own a home with a mortgage?
  3. Do I live in an area with high income and property taxes?
  4. Do I give a large amount of money to tax-exempt charities?
  5. Have I experienced any uninsured losses from theft, natural disasters, or other casualty?

If the answer to two or more of these questions is Yes, then it is worth your time to do a quick calculation to estimate your deductible expenses. Your most significant deductions and the easiest to determine are (1) your mortgage interest, (2) your property taxes, and (3) regular charitable donations.  

Add these values. If the sum approaches your standard deduction, totaling all your deductions is most likely worth the effort. Otherwise, you are done, and you should take the standard deduction.

Itemizing Your Deductions

Medical Expenses: Multiply your adjusted gross income by 7.5%. You can only deduct medical expenses over this amount. If you think your medical expenses exceed this value, you will want to total all deductible expenses. Keep in mind that you can only deduct your out-of-pocket costs. Eligible expenses include:

  • Health insurance, dental insurance, and long-term disability insurance premiums
  • Doctor visits and prescriptions
  • Medical tests, lab work, surgeries, and procedures
  • Hospitalization costs
  • Cost of eyeglasses, contact lenses, braces, dental appliances, crutches, wheelchairs, and guide dogs
  • Mileage for trips to the doctor’s office, hospitals, and pharmacies.

State and Local Taxes:

  • State income taxes paid. This includes taxes withheld from your paycheck and/or estimated taxes you paid in 2023. If your state does not have a state income tax or you elect not to deduct your state tax withheld, you can deduct state sales tax. This can be done using actual calculations of sales tax paid or by using the optional sales tax tables.
  • Real estate taxes paid. Include only real estate taxes you paid on property you own that was not used for business. Typically, this is your primary residence, but it can only include taxes on a vacation or second home.
  • Personal property taxes paid. These taxes are typically paid on cars, boats, motorcycles, and campers. You can only deduct the portion of taxes based on the value of the items.

Interest Paid: You can deduct mortgage interest and points on your primary home or second home.

  • These costs can be associated with a first or second mortgage, refinanced mortgage, or home equity loan.
  • For this purpose, your home can be a house, condominium, cooperative, mobile home, boat, or other property that provides sleeping space, toilet, and cooking facilities.
  • Generally speaking, the loan proceeds must have been used to purchase, build, or substantially improve your home.
  • Investment interest paid on money borrowed to purchase an investment property may also be deductible.

Gifts to Charity

Donations made to qualified charities can be cash, property, or out-of-pocket expenses for volunteer work done for the charity. Expenses include mileage, tolls, and parking fees incurred while volunteering.

  • Deduct the value of any benefit you received from your donation.
  • If you gave more than $250 to any one charity, you need a receipt from the charity to verify your gift.

Loss from Casualty or Theft

  • You must complete Form 4684 for each loss.
  • You may deduct only losses that were not recovered by insurance.
  • If you have a qualified loss and you have decided against itemizing, you may be able to claim the loss by increasing your standard deduction.

Please note that this list of deductions is not comprehensive; it only covers the most common deductions. If you decide to itemize, you will want to review IRS Schedule A thoroughly for other possible deductions or discuss with your tax preparer.

Check back next week for options for filing your taxes for free.

Gathering Your Tax Documents

You should have received all your tax documents by now. Whether you decide to file your taxes on your own or hire a professional, staying organized is crucial. I organize my necessary documents and group them together to make the process easier for my accountant.

Let’s start with what your preparer does NOT need:

  1. Utility bills
  2. Lunch receipts
  3. List of all your prescription medicines

It’s essential to include all crucial documents when filing taxes. Here are the documents you need to ensure the best tax return possible:

  1. All W-2s and 1099 statements. 1099s come in many varieties depending on whether the income is from retirement, interest, dividends, royalty payments, social security, cancellation of debt, or jury duty.
  2. Income earned from self-employment as documented by a balance sheet, income statement, and profit and loss statement. You must report self-employment of more than $400.
  3. Calculate the sum of all “Estimated Tax Payments” you made last year.
  4. Form 5498 showing contributions to IRAs
  5. Form 1098-E documenting interest paid on college loans
  6. Alimony and child support received
  7. Form W-2G documenting gambling winnings

If you plan to itemize deductions, you must provide additional documentation. They are:

  1. Summary of medical and dental expenses, if the total is more than 7.5% of adjusted gross income
  2. State and local income taxes paid
  3. State and local real estate and personal property taxes
  4. Form 1098 documenting mortgage interest and points paid
  5. Home mortgage interest and points paid to an individual. Include the individual’s name, address, and identification number.
  6. Summary of charitable donations. It is helpful to include a list, along with the organization’s address to which you donated.

After sorting your documents into categories, creating a summary of your tax information is helpful.

Here’s an example using a fictitious couple. John Doe is 66 and continues to work full-time. His wife Jane is 68 years old; she works part-time and draws social security. I have created a summary of the information that they should provide to their accountant.

Tax Payers:  John and Jane Doe
2023 Tax Summary
Income Summary:
John’s W-2 income$52,714
Jane’s W-2 income$18,000
Jane’s social security$22,177
Jane’s retirement income$25,434
Bank account interest $47
2022 state tax refund $916
Total income$119,288
Adjustments to Income:
John’s IRA contribution$23,000
Total adjustments to income$23,000
Deductible Expenses:
Mortgage interest paid$15,093
Property taxes on home$2,843
Taxes on personal property$1,794
Total taxes and interest$19,730
Charitable Donations:
Church$12,000Address
Food pantry $2,400Address
Christmas toy drive $500 Address
College alumni association $600Address
Total charitable donations$15,500
Total itemized deductions$35,230
Tax Summary Spreadsheet

If you would like a copy of my tax summary spreadsheet, please comment “Spreadsheet” or email me at susan.ball5@aol.com, and I will send it to you.

Make sure to tune in next week for my next blog post on determining whether it’s worthwhile for you to itemize your deductions. I will help you make informed decisions and potentially save you money. Take advantage of this valuable information – sign up for an email subscription and be notified when my next blog is posted.  

Control Spending for Those You Love

Your health and relationships can be affected by your spending and budgeting habits. For the sake of those you love, you should prioritize managing your budget and living within your means. Buying your loved one the perfect gift on Valentine’s Day is a way to express love and provides a great sense of satisfaction unless you cannot afford the gift. 

When the credit card bill arrives, and you do not have the money in your checking account to pay it, it leads to debt and stress. If you have planned and set some money aside, you may be able to take the money out of your savings. Otherwise, you pay a portion of the bill and carry a balance forward.

If spending beyond your means is rare, you likely can recover with a few months of cutting back on “extras.”  However, if it is a regular occurrence, your balance will increase each month due to accumulated interest and new purchases.

In America, credit card balances currently top more than $1.13 trillion. Transunion estimates that the average American has credit card balances of $6,088, and Money magazine estimates the average non-mortgage debt at nearly $21,800. Many Americans are stressed about their finances. This stress is harming their health and their relationships.  

Financial stress leads to physical challenges, including anxiety, depression, high blood pressure, migraines, aches and pains, and difficulty sleeping. These physical ailments can make you irritable and have wild mood swings. All of which is hard on those you love. You and your spouse may fight about money. You may find yourself avoiding the company of others and become more and more withdrawn from social life. This is not a healthy way to live.

It is essential to recognize that debt is a form of bondage. The Bible says, “The rich rule over the poor, but the borrower is servant to the lender.”  Proverbs 22:7

The antidote to debt and stress is to take control of your finances. If you need a place to start, try working through the following suggestions to climb out of debt. Write them down and put them on the frig. Keep it in a prominent place in the house where you will see it and be reminded and encouraged each day. 

  • Immediately forego all unnecessary expenditures.
  • Work with your spouse to create a budget you can both live with.
  • Designate a sum of money to pay toward existing credit card balances.
  • Track your spending so you are aware of where your money is going.
  • Include some “fun” spending in your budget. If your budget is too strict, you will feel punished, and it will be challenging to stick with it.
  • When you need to make a significant purchase, research the item for the best price.
  • Employ the “24-hour rule” for non-essential purchases. If an item in the store tempts you, wait 24 hours. Ask yourself if you need the item and what you will give up in order to afford the item.

Here are some suggestions on how to plan to avoid temptations to spend beyond your budget.

  • Make a grocery shopping list and stick to it. Determine how much you can spend and don’t exceed your limit. Some people use cash and only take the budgeted amount to prevent overspending.
  • Pack lunches and snacks for work. Brew coffee, take it with you, or buy coffee pods and make coffee at work.
  • Invite friends over for home-cooked meals and game or movie nights rather than going to expensive restaurants and expensive activities.
  • Avoid surfing Internet shopping sites that might tempt you to buy things you do not need.
  • Tape television shows and fast forward through commercials to further avoid the enticement of slick advertisers.

This Valentine’s Day show your true love for your spouse and family members by committing to reduce your debt and lower your financial stress. Your physical health and relationships will improve if you do.

Unique Ways to Express Your Love This Valentine’s Day

Are you scrambling to find the perfect Valentine’s Day gift for your spouse or the special someone in your life? Most people take the easy way out; they order flowers to be delivered, bring home a box of chocolates, and make a dinner reservation. In 2023, Valentine’s Day spending in the U.S. came to $185 per person. Yet, 34% of adults surveyed expressed disappointment in their partner’s expression of love on the holiday. Forty percent of women felt their partner fell short of adequately celebrating the occasion.  

The moral is that spending a lot does not necessarily make your loved one feel special. So, this year, instead of overspending and stressing your budget, you might consider giving gifts that take a bit of effort but cost little or nothing. Making the effort to create a gift or doing an act of kindness demonstrates your love for the recipient.   

Consider what type of action or gift is most meaningful to your spouse or partner. Gary Chapman identified five languages of love:  physical touch, words of affirmation, acts of service, quality time together, and physical gifts. He theorized that people have preferences and will appreciate and value the gift and you if you cater to them.

If your partner’s love language is touch, consider treating them to an in-home personal spa day.  

  • Prepare a warm bubble bath with a soft, fluffy towel nearby for drying off.
  • Give your partner a neck or back massage or a coupon for a massage once a month for a year.
  • A foot soak followed by a massage is an excellent “touch” gift.
  • If your partner is a lady, paint her toenails.
  • Make an effort to give frequent hugs and kisses throughout Valentine’s Day and every day.

For those who value words of affirmation, a handmade Valentine’s card or note will be significant.

  • Write a note or poem expressing the qualities that you love about your partner.
  • Hide messages of affirmation around the house and in lunchboxes and briefcases.
  • Take notice of the unique things they do for you and thank them for doing those things.
  • Print out the words of a song that describes your feelings and put them inside a handmade card.
  • Post Facebook messages telling all your friends how special they are to you.

Acts of service require a bit of effort, but you could demonstrate love to those with this love language in many ways.

  • Cook your loved one’s favorite meal rather than going out.
  • Bake their favorite cookies, cake, or pie. 
  • Do a chore for them, especially one you know they do not enjoy doing.
  • Complete one or more chores from the “honey do” list that your spouse has made for you.
  • Give your partner a book of coupons for services you will do throughout the year.

Spending quality time together requires little more than clearing your schedule and making the love of your life the focus of your day.

  • Plan a day of doing their favorite things, whether antiquing, hiking, visiting a museum or art gallery, or attending a sporting event.
  • Recreate your first date or a favorite date.
  • Turn off your cell phone and watch a romantic comedy or an action movie.
  • Cook your favorite meal together.
  • Participate in their favorite hobby—play pool, paint, go to a pottery class, or go fishing.

Select a meaningful gift if your loved one values a present over words and action.

  • Frame a favorite picture of the two of you or your family.
  • Buy a favorite dessert from a local bakery.
  • Rather than a box of inexpensive chocolates, select a few pieces of high-quality chocolates in a beautiful red or gold box.
  • Purchase a plant that will live long after a bouquet of roses has been discarded.
  • If your loved one is a collector, a new piece to add to their collection is a thoughtful gift that will not disappointment.

If God has blessed you with someone special to share your life, be grateful to Him. Take time this Valentine’s Day to thank Him for the gift of romantic love in your life. Remember that actions speak louder than words unless your partner values words of affirmation about other expressions of love. 

“Dear children, let us not love with words or speech but with actions and in truth.” 1 John 3:18 (NIV)

6 Questions to Ask to Identify Your Perfect Job

“I hate my job,” a friend told me recently. Her feelings reached beyond a typical bad day scenario. She dislikes the work that she is doing and the people at work. A study by the Pew Research Center in the spring of last year revealed that half of workers are highly satisfied with their jobs. That means that the other half are not. And 19% of workers reported being miserable in their careers.  My friend fell into that 19% of people who are miserable in their jobs.

For many people, like my friend, their work is just a paycheck to provide for themselves. She can not articulate what she would enjoy doing, complicating her situation. She is not alone. 

If you do the work God has called you to do, you will not be miserable. Of course, you will have stressful days, but generally, you should feel fulfilled by your work. If you are miserable, you can take steps to figure out what God created you to do.

God demonstrates through stories in the Bible that He has a plan for each of us. God created us with unique abilities, temperaments, interests, and talents. In Exodus 31, God instructed Moses to build the Tabernacle, and He provided the names of two specific artisans whom He had filled with the knowledge to do specific jobs. The craftsmen had different skills, and they could oversee all the specialized work together. When God set the Levites apart to be priests, He assigned different jobs to different Levite families. In the New Testament, Paul tells us that God created some people to be evangelists, some to be prophets, and some to be teachers, among other callings. 

God also created you to do specific work. Ephesians 2:10 says, “For we are His workmanship, created in Christ Jesus to do good works, which God prepared beforehand that we should walk in them.”

To help my friend, I turned to “The Purpose Drive Life” by Rick Warren. He suggests several questions that a person should ask themselves to help them determine their purpose. I made a list of the questions from the book to help my friend consider other job options as she prays and seeks the Lord’s guidance.

Here are 6 questions Rick Warren suggests to help you determine your purpose:

  1. What were your favorite family experiences? Favorite memories?
  2. What were your favorite subjects in school?
  3. What jobs have you had that you enjoyed or found meaningful?
  4. What are the most memorable times you have had with God?
  5. What Christian service/ministries have you enjoyed?
  6. What have you learned from your life’s problems, challenges, hurts, and trials?

God wants you to get up excited to face each day. Your job should be more than a way to get a paycheck. It should give you joy and satisfaction knowing that you are where God intended you to be, doing the work He created you to do.

The path to finding your purpose is not an overnight journey. It would help if you took the time to answer the questions and also ask your closest friends and family to help you evaluate what you enjoy. Ultimately, it is for you to decide with God’s help. 

Now is an excellent time to begin searching for a new path. 

Trusting God in an Uncertain Economy

A few days ago, I was feeling pretty good about the economy. The stock market has climbed above 37,000, and gasoline prices in my area have fallen to around $3 a gallon. Then, a friend mentioned that she has been delivering groceries and meals after work to make ends meet. She has a secure job with an average salary. Her husband operates their family-owned business. Yet, they are struggling to make ends meet. 

As I reflected on my friend’s story, I realized that several people in my life are working full-time jobs and then making deliveries or doing other side jobs in the evenings and on weekends. Increased inflation weighs on many consumers, and Americans continue to struggle with higher prices on food, rent, and restaurant meals.

Will the economy improve over the next few months? Or are we in for a stock market crash? Economists study several indicators and make predictions. They often disagree because the reality is that no person knows what the future holds. The bottom line is only God knows the future. 

When we put our trust in Him rather than our jobs or wealth, we can relax and live in peace regardless of what is happening in the world. The privilege of calling Christ your Lord involves walking with the One who holds your future in His hand. “Command those who are rich in this age not to be haughty, nor to trust in uncertain riches but in the living God, who gives us richly all things to enjoy.” 1 Timothy 6:17

When you trust God with your finances, you will have peace even when bad economic news impacts you personally. My trust in God allowed me to have peace when my husband was laid off from his job during the Great Recession in 2009. I could face whatever was coming our way, confident that God would take care of us. We are His children, and God cares for His children.

It is easy for me to say, “Trust God.” But it may be difficult for you to do that in your current circumstances. If you are having trouble trusting God for your future and finances, I encourage you to read and meditate on Psalm 71. The psalm illustrates some steps you can take to increase your faith.

Remind yourself of God’s past faithfulness. The psalmist is in trouble and needs God’s help. He begins in verse 1 by saying, “In You, O Lord, I put my trust.” He reminds himself that God protected him in his mother’s womb and throughout his youth. He then asks God to preserve him when he is old, and his strength fails. He builds up his trust in God as he recalls God’s faithfulness throughout his life.

Praise God for His goodness and His love. The psalmist shares his troubles with God in verse 13, but in verse 14, he reminds himself to give praise to God, “But I hope continually, and I will praise You yet more.” (Psalm 71:14). And he promises to tell others of God’s faithfulness and righteousness.

Declare that God is faithful and is the answer to your needs. “You, who have shown me great and severe troubles, shall revive me again, and bring me up again from the depths of the earth. You shall increase my greatness, and comfort me on every side.” Psalm 71:20-21. The psalmist tells himself and others that the God who has watched over him in the past will do so again. 

Thank God for what He has done and what He will do. “Also, with the lute, I will praise You— and Your faithfulness, O my God! To You, I will sing with the harp, O Holy One of Israel. My lips shall greatly rejoice when I sing to You, and my soul, which You have redeemed. My tongue also shall talk of Your righteousness all the day long.” Psalm 71: 22 – 24

Whatever trials you are experiencing today, God is the answer. God does not promise to take all your troubles away. But He does promise to be faithful to care for you in your problems and to bring you safely through them.  

Please read some of my other blogs for more encouragement on trusting God with your finances. If you want to go deeper, my Bible study, Honoring God with Your Money, is an excellent resource.