TAXES

TAXES

a cranky rant

Begin rant.

I just finished this year’s taxes.  Well, the accountant finished.  I had to pay, but then realized we missed a credit.  We already sent in a check and now have filed an adjustment.  Nothing is easy.  The credit was missed because, well never mind, just let’s say it was not out of carelessness or ignorance or error…it’s complicated.

I only use an accountant because I am lazy, and because I years ago I made an error doing my own taxes.  The relentlessly bitchy ex-wife beat the crap out of me for it every year.  I still don’t believe I really made an error, but the state of New York disagreed and they seem to have the last word.  Anyway, it didn’t really cost me anything (they waved interest and penalty) but because we had to pay two years after the fact, the relentlessly bitchy ex-wife considered it an added expense that was due to my incompetence.

I have recently realized that I no longer have a relentlessly bitchy ex-wife to worry about.  As a matter of fact, Mrs. C is good with numbers, actually enjoys numbers and used to do her own taxes.  Next year, we will work together and do our own taxes to save the accountant fee.

There is no reason for me to be afraid of filing our taxes.  They are more complicated than a short form, but with past filings as a guide and Mrs. C by my side, or vice versa, there is no reason to pay an accountant.

People are too afraid of doing their taxes.  There is so much news about how taxes should be simplified and of the mountains of paper required to file, that too many people these days pay to have their taxes done.  They take their information to H. R. Crock, or that Turbo thing, and then brag about how they get a refund, when they could get the same refund themselves by taking the same 15 minutes that H.R. Crock takes to file for them and they could save the fee.

Ninety percent of the country can file with the short form. 

1.     Put your salary income on line one. (From your W2 form)

2.     Taxable interest earned if over $1500 (zero for most)

3.     Unemployment compensation (zero for most)

4.     Add lines 1,2 and 3 to get your total taxable income for line 4.

5.     Personal exemptions if mom or dad not claiming you (follow instructions, they are very simple.) $10,350 if single, $20,700 if filing joint.

6.    Subtract line 5 from line 4.  If line 5 is larger enter “0”. 

7.    Enter tax withheld (from your W-2 form.)

8.    Lines 8a, 8b, are for tax credits you probably are not entitled to, but check instructions just to be sure.

9.    Line 7 plus 8a…pretty much just line 7 unless you are entitled to earned income credit.  

10.                       Tax owed. Use tax table and the amount on line 6.  If zero just enter zero.

11.                       Heath care, if you have no coverage…see instructions

12.                       Tax owed.  Add line 10 and 11…this is going to be zero for most people.

13.                       If line 9 is larger than 12 enter that amount for you REFUND!!

14.                       If 12 is larger than 9, you must pay that amount.

If line 9 is greater than line 12 (for most people it is, unless you claimed too many exemptions during the year) that is the amount you will get as a rebate because you overpaid during the year.

If you simply fill in line by line this is not as complicated as it seems at first glance.

If your income and deductions are beyond a short form filing, you should be intelligent enough to do you own taxes, however if you want the luxury of having someone do it for you as I have for some years now, I do not judge.

It boggles my mind how so many people pay up to $150 or more (short form filers) to have someone else do a few simple addition and subtractions. 

They teach so much useless stuff in school, art, phys-ed, music, Latin, Shop, trigonometry, Shakespeare, (just kidding these are all worthwhile subjects…except Latin) why can’t they spend one hour explaining how the Income Tax system works, what exemption are, and how to process a short form? They could even spend another hour demonstrating how to file a relatively simple long form.

End of rant.


I have to share this:

My daughter's post about what was a pretty rough time in our family; I would hate reading it because of that, but she writes so well that pride overcomes the sorrow.

http://thebrandywinechronicles.blogspot.com/2017/03/life-with-jack-and-jane-part-1-moving.html