With all apologies to the Beatles, it's starting to be that time of year when we all look at our W-2s and fill out our form 1040s. I've used TurboTax for the past several years, and it makes life so much simpler. I won't say it makes the task of doing taxes fun, but it does take some of the sting out of it.
One thing that does sting -- at least on the surface -- is that number that pops out when it's done. Now, the whole thing is just preliminary right now, since I need to go back and verify a few things before I send it off to Uncle Sam, but the numbers are only going to change a few dollars either way.
The results? I owe Uncle Sam about $1,566, and Indiana owes me about $140.
Ouch.
This has happened ever since I started working for myself teaching piano lessons and composing music. That number gets a little bigger every year, and as it does so does the smile on my face.
Huh?
That $1,566 I owe Uncle Sam is money which has been in my hands, in my bank account, working for me, lowering my debts, saving me or making me interest, instead of helping out the government. Oh, they'll still get their portion -- give to Caesar what is Caesar's and all that -- but not before it's due them, and in the meantime, it'll be doing me all manner of good.
When you do get finished with your taxes this year, take a critical look. If you got a refund -- especially of the "whopping" variety -- have your withholding changed so that money is yours all year long, not just when April rolls around. If you're worried you won't have the money to pay when the time comes, put it aside in an interest-bearing account until you need it.
(On a more personal note, now that the taxes are done, I think it's about time to get that mortgage refinancing underway. Rates dropped an eighth of a point in the past couple of weeks, so if we act fast, we can knock over two percent off our mortgage, and quite a bit off our monthly payment.)
Anyone else want to share your thoughts about taxes? Comment section is below -- share away!
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