The taxes are finally done and the damage was not nearly as bad as I thought. I’ve used TaxCut to prepare my taxes for the past few years and I’ve been pretty happy with it. I’ve also used TurboTax and I find that I prefer TaxCut for the ease of use. Since I used TaxCut last year, I was able to bring over my data from last year without having to dig out my tax returns from 2006. My income sources in 2007 were pretty much the same as 2006 so I only needed to update the dollar amount instead of typing in the information all over again.

I won’t post the actual numbers but my income for 2007 was around $80k. That number was determined by adding up the salary from my job, rental income and interest income. I didn’t need to include blogging income because it wasn’t very much at all (less than $100). This year should hopefully be better though (subliminal message: please visit the advertisers ;-). My ultimate goal is to bring in at least $100,000 from all sources by the time I turn 33. I’m about to be 31 so I have 26 months to hit my goal.

I usually under withhold my federal taxes since I’d rather save the money on my own and just pay the government what I owe in one lump sum. I like to try and make my money work for me instead of giving the government a free loan. I was able to significantly reduce the federal tax owed by itemizing deductions for mortgage interest on my primary home and my rental property and expenses related to my rental property.

I’m happy to say the numbers worked out much better than I’d hoped. I only owe the federal government $504.00 and I am getting a refund of $2500 from the State of Georgia. I plan to contact my human resources department to have my state exemptions adjusted so they will take a little less money out of each paycheck. Once I receive the economic stimulus check this summer, I will actually have a gain of $96 dollars from the feds. I’d set aside $1000 to pay my federal taxes so I won’t need to pull additional money out of savings as I’d originally thought. I’ve electronically filed my taxes and I should get my state refund in about a week. I will send the payment for my federal tax balance before the April 15th deadline.

Have you finished your taxes? Did you get a refund or do you owe Uncle Sam?

Related Posts:
Suggestions for your Tax Refund –
Part 1, Part 2, Part 3, Part 4 (Summary)

9 comments

  1. fitcat // March 14, 2008 at 6:59 AM  

    Thanks for the answer on the real estate management! Actually that makes a lot of sense if you only have one property.

    My parents own in the realm of twenty properties, about two years ago they shifted almost all of them to the one real estate agency and I know it has already saved them quite a bit.

    [They're really quite incredible my parents - I remember when I was nine or ten we had to break open the coin jar one week to buy groceries...they were almost bankrupt at one point but have brought themselves so far since then]

    I love reading American PF blogs because you learn about so many little cultural differences. Even taxes - from what I understand you guys run on a calendar year when you do taxes? We run on a financial year eg this tax year is July 1 07 to June 30 08 and then you have until October or May to lodge your tax return depending on whether you lodge through a tax accountant or not.

    Good on you for getting your taxes finished and that's a great goal you have there. :)

  2. "Future Millionaire" // March 14, 2008 at 7:54 AM  

    A $2500 refund from the state of Georgia - how'd you manage that? I had to pay $179 to them.

  3. Kay @ Don't Mess With Taxes // March 14, 2008 at 10:20 AM  

    We live in Texas but have to pay Georgia state taxes. How's that possible. That state taxes income that comes from Georgia sources and my husband telecommutes for an Atlanta based employer. I must say, this really irks me, as the money that's going to Georgia can be offset by Texas state taxes because we have no state income tax here! So that's simply cash out of our pocket that we can't spend locally.

  4. El Cheapo // March 14, 2008 at 4:23 PM  

    Just wanted to leave a note and say that I'm a big fan of your blogging. Keep up the good posts!!

  5. Prince of Thrift // March 14, 2008 at 6:01 PM  

    I wish I could get started on mine.

  6. SingleGuyMoney // March 14, 2008 at 6:30 PM  

    @fitcat: Thanks for your great comments.

    @futuremillionaire: I had too much deducted from my paycheck for Georgia taxes. I need to have my HR department adjust it.

    @kay: That sucks!

    @el cheapo: Thanks so much for reading my blog and I am so glad you enjoy it.

    @prince of thrift: You have a couple of weeks and then you have to do it!

  7. Dimples // March 14, 2008 at 9:50 PM  

    I did my taxes and got them via direct deposit on 2/22. I live in Florida so no state tax to deal with. I got back $2629 ffor my federal tax return.

  8. Kim // March 15, 2008 at 10:47 AM  

    I am working on a 10K adoption credit so I got the tax back from my bonus, $734. My regular paycheck doesn't have any tax taken out of it since my liability is zero for awhile.

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