I’m in ur TurboTax, doin’ ur taxes.

06 Feb 2007 By

See? Except I did that wrong because I’m not in ur anything. I’m in mine. But you get the point. It amused me, anyway.

*ahem*

So I’m working on my taxes. [BoA TurboTax discount link] [TurboTax coupon code page] I’m actually thrilled to be doing this.

  1. Last year was as simple tax-wise as it could possibly have been.
  2. I’m getting a good chunk of a refund.
  3. While I definitely do not intend to put off filing, I’m not in a position where I’m strapped enough to need that refund right away.
  4. I made more than I thought I did last year. By a lot. I forgot that my salary took over from my hourly rate a pay period earlier than I actually transferred, but that doesn’t account for the discrepancy. I don’t know where that came from. Not complainin’. Just sayin’.
  5. We’ll find out on Monday what the company earnings were for last year. I can then calculate my bonus (probably incorrectly). We’ll be betting bonuses by the end of the month. That’ll be a niiiiice chunk.

The only thing that could be better for me right now is if all my debt were already gone. Except for there are a few loose items which could bite me in the ass in a big way, so I shouldn’t be celebrating just yet.

  1. My employer notified us all last year that there may have been a reporting issue with the IRS for 2004. I’ve been contacted by the IRS about it, so I have to resolve that. I haven’t heard any horror stories of people having to pay up (with two years of accumulated interest), so I’m not too worried about it, but having to deal with the IRS regarding an irregularity scares me.
  2. I (really stupidly, I know) cashed in my 401(k) two years ago. I made sure they withheld the penalty plus enough to cover the tax I’d owe. I got a disbursement statement. But I never got a 1099 for it. And then found out the brokerage that held my account no longer held it and it had been transferred elsewhere. I ran around with them long enough to find out I wouldn’t get a 1099 in time to file my taxes last year, so I just… didn’t bother. So I need to get that figured out. As long as enough was withheld, I think I’ll just have to amend my return. But if I was short, I’m screwed.

So here’s the rest of plan, since we’re talking about the money right now anyway. I am constantly recalculating and replanning, so this is just what it looks like today. This is reasonable, but a tad on the optimistic side.

  1. Take care of outstanding tax issues.
  2. Assuming there’s money left over, finally buy those two Ikea Poang chairs.
  3. Assuming there’s money left over, set aside for SXSW. Everything’s all booked!
  4. Assuming there’s money left over, pay down Discover card as much as possible.
  5. By this point it will most certainly be March, and I will be able to get my free annual credit report again. Check the credit, repair as needed.
  6. Apply for a Prosper loan to cover one, maybe two of the three credit cards (since I’d never get a better deal than I already have on the third anyway). This will be harder than it could be because Minnesota has such a low cap on the interest rate at which you can obtain an unsecured loan (most states it’s about 25%, MN is something like 7-9%). If I can get one, my monthly outlay will certainly go up, but I’ll be guaranteed to be paid off in 3 years. Less if I can pay ahead.
  7. And somewhere along the way I’ll start contributing to my 401(k) since, as I mentioned above, I don’t have one anymore.

I like having a plan, even if it changes all the time. Must have plan.

  • Kimberley

    Establishing a 401k when you’re able is key, it can also be used in the future to borrow against (if you’re planning to stay with your employer for some time). That’s been one thing that I don’t mess with (except cashing mine in when I left Boston).

  • http://lasadh.com Sherri

    IM in uR bl0gGZ, hoggin ur cOMmeNt spase.

  • http://s4xton.com/ Aaron Landry

    Wee! Thanks for the discount links. I’ve been using HRBlock.com online for about 5 years I think… but switching to TurboTax online because HRBlock doesn’t seem to support having an HSA listed on a W-2 and from a few other recommendations that they’re “better.” They are a bit more expensive though but in the end I think I’ll make out better.

  • http://mikeiam.net michael

    I did mine with TaxAct this year; compared it to TurboTax and got the same refund. Difference is that TacAct was only 12.95 to file state and TurboTax was going to be 25

  • http://www.swirlspice.com Erica

    I used TaxAct last year. Partly because the fee was cheaper. Mostly because I entered something into TurboTax just to see what would happen and it wouldn’t let me undo it. I hate that I had to give up rolling over all the info since I’ve used TurboTax for several years, but oh well. No big.

  • http://www.house8.com Karen

    Man, you are lucky to be getting a refund. just found out my non-W-2-ass *owes* a ridiculous amount (I didn’t pay quarterlies in 2006, and will have to pay Q1 for 2007). Ugh. So whatever you spend it on, enjoy that Dough That Formerly Belonged to Uncle Sam. P.S. You should look into a Roth IRA instead of a 401K. I’m not smart enough to know why they’re so much better, but I’ve been told by many they are.

  • http://www.swirlspice.com Erica

    I didn’t pay quarterlies in 2006, and will have to pay Q1 for 2007 — Ooh, that sucks. The idea of having to manage your taxes as a business owner scares the shit out of me.

    I do have a Roth IRA that I contribute to, but I’m not contributing the max. I suppose ideally I’d be contributing up to the company max to the 401(k) and then the max to the Roth IRA. Don’t have that much extra floating around, though.