I took advantage of being snowed in this past weekend to get some things done around the house and tackle the dreaded task of completing my taxes. I'd spent the last few weeks gathering all of my W-2's, 1099's and receipts and putting them in a nice pile. Every time I attempt to attack the pile and get my taxes started, something more interesting would get my attention and I would put it off longer and longer. I finally bit the bullet and got it done.
The result was that I only owe the federal government $12! Last year, I owed $1533 and the year before that, I owed over $2000. Now that I have the right amount of taxes withheld for the federal government, I need to adjust my state tax withholding. I got a refund of a couple thousand dollars last year from the State of Georgia so I adjusted my W-4 withholding. It didn't do much good because this year, I will be getting a refund of over $2000 again.
One of the things that helped reduce my taxes were some repairs I had to have done to my rental property. I also get to write off the expenses of maintaining the rental property such as lawn maintenance, pest control and depreciation. The other thing that helped was the amount of money I paid in mortgage interest. I didn't pay as much as J over at Budgets Are Sexy but I did pay a tidy sum of over $20,000. I was also able to deduct the interest I paid on my student loan.
Since I put mine out there, now I want to get all up in your tax business.
- Did you get a refund or do you have to pay? How much?
- If you are getting a refund, what do you plan to do with it?
- Do you like getting refunds or do you prefer to get your money throughout the year?
- Do you do your own taxes or do you pay someone to do them? I do my own using H&R Block at Home.