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So DH and I filed our taxes (grumble, grumble). Why the crankiness? Well, because I moved us up to another tax bracket. I should be thankful, right??? I am. But, it also meant that now child tax credits begin to diminish (by a lot!). That big tax return I usually look forward to got gobbled up and spit out 1/2!!!!
🙁
Side note: Oh ya, our preparing fee went up, too. Although, I can’t blame our tax man having to raise due to inflation. My husband has been with him for years and still gets a great deal!
Well, least we don’t owe. So now, DH and I need to look at building right offs, wealth. Investment properties… I think opening a business helps (anyone know on this one?).
I am looking for guidance and suggestions on how to go about making my tax situation better next year. Can you advise????
PS – if you are from CA file state before Feb 1st or you’re gonna get an I.O.U.!
Hu? I’m from California. Whats this IOU thing?
(Not getting my W2 till Jan 30th)
This will only effect your State refund, not your federal. And most don’t get our W2s until then… I think that is the governments expectation. It’s cuz CA is running out of dough.
I think the last IOU caused people to wait 3 weeks longer. I don’t know what this will bring.
The IOU, I was told by my tax man and the various articles circulating.
So is this IOU thing definite?! You should move to Georgia … we still have a little money in the coffers. 😉
Honestly, I truly do not get how and why Cali is running out of money because “my perception” is that Cali is one of the wealthiest states with Hollywood and ridiculous home prices. I mean seriously, what happened?
I posted a fox news video on my blog about the CA IOU. Go here to see it
http://wewannabdebtfree.blogspot.com/2009/01/claifornians-getting-iou.html
I’m in CA; I better look into this IOU; I hadn’t heard anything about it. Glad I read your post.
Aw, bummer about jumping a tax bracket. Although I am jealous you got to file already 🙂 My employer waits till the last possible minute and Schwab advised they plan to mail 1099s the middle of February. Ugh!
No ideas on skirting the tax man, aside from the usual maxing out 401k and Roth IRAs.
wow interesting about the IOU’s!
Bummer to hear about the tax bracket, but way to go in getting your taxes done and out of the way girl!! whooo hoo!!
that is crazy about California!!! glad I am across the country!!!
I never thought I would ever say this: thank goodness I owe the state (Cal) tax this year. Maybe I should just issue them an IOU and say, I’ll pay you my taxes once you’ve refunded everyone else. Then I’ll be updating my blog from the pokey!
I pray you get some great tips. I have a cleaning company and right offs are a must!
Faith
@ Ms. MoneyChat: it sounds definite. Did you hear that CA is now going to take out loans to pay the Unemployment Claims???? Sounds like we’re going bankrupt!
@ D and D: Thanks for the post! Least it is just State.
@ Budget Mama: You haven’t heard? Yup, Gonna have to wait for State. Can we charge them interest on the IOU???
@ Mouse: Every one has to mail by the end of the month, right? Hopefully you will get all soon.
We filed, but on estimation. I am still waiting on my W2. We just based it on the last paycheck for the year. Still waiting to efile. :/
@ PJ: I should be happy about moving up. I am. Now, I just need to adjust and find beneficial capital that I can write off! 🙂
@ jpkittie: California. Snobby, but broke. LOL!
@ shtinkykat: LOL! I really want to send them a bill with the interest accrued. Why not, if they can charge us up the whazoo??? 🙂
I am hoping you don’t owe too much.
@ Latte: so, having a business is a good thing. Hmmm… what to do? 🙂
I had a business for the last several years, and I was able to write off a certain percentage of expenses related to our home (electricity, heat, trash bill, etc.) and my car. It was my full-time job and I worked from our home, so keep that in mind, but it really reduced my taxable income. I won’t know until I do my taxes this year how working full-time and still having the biz part-time will affect things. Unfortunately, I think I underpaid my taxes on my FT job, so hopefully the PT biz stuff will even it out, since I think I will have a loss there once all of my write-offs are factored in. I’m nervous, though.
It’s frustrating when you work extra hard to pay of debt or get ahead, only to find that the extra money disappears at tax time. I recently did a post on how to reduce your taxes but it’s primarily relevant to Canadians.