Are You One of Those?
So, I finally finished my taxes last night. It’s more complicated for those of us who have LLCs. My partner and I have spent the past three nights sorting out what goes in what boxes of what forms and double checking the numbers.
Last year, I filed a 1065 and forgot to sign it, and it was by the grace of God– and the IRS– that they waived what would have been a $400 fine for incorrect filing because I was a first time offender. Yes, my 1065 is signed this year.
So, how do you do your taxes? Do you use a program, go online, or are you one of those crazy amazing people that actually take the time to fill out the paper forms? And do you e-file or paper file?
I use TurboTax and I e-filed this year because of the large refund I’m expecting. I usually try not to have a large refund, and I try not to owe either.
And yet every year I’m baffled by the number of people that claim 0 exemptions just so they can get back a refund. I can understand not wanting to owe, but I have no desire to have the government hang onto my money, interest free.
I have an escrow account with my mortgage to pay taxes and insurance– they pay me interest. The government pays no interest, and if you’re getting up to $5000 back, that’s potentially a $100 you’re paying the government to hold your money.
Why throw out $100? Why not hook up your direct deposit to send the difference in the exemptions into a CD or some kind of fund that you can’t touch, and you can at least make interest?
Discount Perfumes
Comments from MInTheGap
Mary said,
Wrote on March 5, 2008 @ 4:25 pm
Because the big chunk at one time is so much fun to get, even if it’s needed for bills!
We had five years of self employment and coming up with 15% of our total income each year at tax time was hard! Especially since we were struggling to get the business off and running in the first place.
I’ve been getting all our expenses/incomes together for the tax lady…in addition to dh’s regular job, we also raise and sell the Border Collies, and dh does his leather business part-time…so we have a lot of itemizing and inventorying.
My job’s done, now it’s just up to dh to finish his end of it!
Mary’s last blog post..Junk for Cash