Between lovely company and taxes, it’s been a full vacation. I managed all the tax returns by yesterday, including payments for this year. Fortunately, January through the end of March were fantastic months earnings-wise. The money was there to pay everything with a little left over.
Even with company here, I took my time through the revisiting of the forms. By doing so, I saved myself $3,500 – I discovered deductions I didn’t know I was eligible for. We’ll see if the IRS agrees, but I think it’s done right this time.
Here in PA we have the joy (insert sarcastic tone here) of paying federal, state, and local taxes. By the time I was finished with both last year’s taxes and this year’s estimated payments, I shelled out as much as I made in my best month this year. We make, they take.
I was pleased with my records this year, too. I managed to file every necessary paper except for one, which wasn’t critical. I was able to locate what I’d paid with that one, so it wasn’t too much of a deterrent. I’m getting better at this. Last year was my first year without an error. This year I hope to repeat that success.
Also, I’ve decided to put myself on a savings path. I don’t save enough in my IRA. Both my companies allow for monthly deductions, so I’m signing up for those this week. Paying myself should be included in all this check-writing, shouldn’t it?
So how was your tax day? Any surprises? I know Paula got a refund (you lucky devil). How did the rest of you do? Do you do it yourself, like Devon and me? Or do you pay someone?
9 responses to “Taxed”
I'm not sure how our tax system compares in Canada, but I do know the taxes I pay seem very high. Our deadline for payments is April 30. This year, I paid over $8,000. I only earned $36,000.
The big killer here is the Canada Pension Plan (contributions). If you work for someone else, they pay 50% of these contributions. If you're self employed, you pay the full shot.
I put away 30% of my income in a separate account so what I have left over is kind of like a refund 🙂
I did them myself this year with the H&R Block software because they screwed up our taxes last year and charge quite a bit.
I'm sure the IRS will tell us if they disagree.
I wrote a three page cover letter full of questions and why I put certain things in certain lines. They'll tell me if I need to do something else.
It's done, it's gone, I paid, and I paid my quarterlies for this year.
At least I tried.
I'll be darned if I can figure out the IRS. In 07 and 08, we owed a whopping amount. For 09, we just got a huge refund. I guess I was overcompensating for earlier years. No matter how careful I am, even touching base with my tax CPA a couple times a year, I can't accurately predict what we'll owe. Part of that is that hubby has both W2 and 1099 income, and I have 1099 income. Hubby isn't so good at doing the quarterly estimated thing, even though I try to keep him straight.
Here's what sticks in my craw: I pay estimated taxes based on what I've actually made that quarter. And even though in 09 I paid in way more than I needed to, I still get dinged with a $9 penalty because my payments are even or some such baloney.
Krista, it's close. Mine was closer to $10K ($41K in earnings roughly). That includes our equivalent to the pension plan – Social Security. We have to pay the full amount always (full-timers, is that so?).
Devon, I like that idea. I think the IRS appreciates and understands that we have questions. It's better to ask than to just let it go.
My quarterlies were more than my annual from last year, but at least I had it to pay it. Amen.
I do it myself. And people pay me to do it for them too.
Well, Lori, let's put my refund in context: It was only $198 and I had it applied to my 2010 taxes. And the only reason I got it was because my income took a big hit last year when one of my biggest clients cut their pay rates – across the board, not just mine.
But it was the first time since 1997 I haven't had to write Uncle Sam a huge check this time of year! (That year it was because my siblings & I inherited and divided a $10K mutual fund after our dad died, and withholdings were taken out before we each got our small slivers.)
We have state taxes, too, but those aren't too bad. Locally, we have one of the highest property tax rates in the nation – luckily (?)the real estate values are in the toilet. And it's been flushed.
Did mine myself, though next year I'm going to hire someone. She is a whiz with accounting and tax stuff and I feel confident she can work better mojo than I can with my finances.
My goal this year is to save. I've always been a spender, not a saver, but I'm determined to have a moderate foot in both camps. I've heard too many horror stories lately from people who didn't have safety nets.
My father-in-law is a CPA, so he does ours for us every year. Which is great except that he tends to be a little too obsessive about getting every last i dotted….and kinda drives us all nuts. Maybe next year we'll go to H&R Block.
Hubby and I are getting the biggest refund either of us have ever gotten this year. Have no idea why, except that it could have something to do with this being the first year we're filing married.
I do mine every year with Turbo Tax. Have for almost 10 years, ever since I got more back for hubby than the acct he was using did. He was a mechanic & she didn't have him write off his tools, which were expensive & essential to his job. Have had pretty good luck w/turbo tax. May miss a couple of little things here & there, but I'm happy enough with it.
We got an ok refund this year, thanks to our medical expenses last year. COBRA, anyone? But I turned right around and spent every penny of it on more medical expenses: dental surgery. So much fun. *sigh*