Feb 28 2007
Deep in the Heart of Taxes
I’m a very organized person, at least as far as my finances go. That being said, I usually have my taxes done within a week of receiving all my W-2’s. And for those who might ask, I do my taxes by myself, and the long way. No software, only a calculator. As an individual with a relatively small refund, it’s not worth it to me to pay a professional to do my 1040EZ or spend money on a software program to do the 1040EZ for me. (And for those who cannot fill out a 1040EZ by themselves, I think you should seriously reconsider returning to elementary school.)
Why do I do my taxes by myself and risk all the hair-pulling stress? A couple of reasons. One, I just like the sense of accomplishment that comes from being able to do my own taxes. A few times I’ve had some special forms to fill out, but nothing I can’t find out on my own, especially with the IRS website being so user-friendly. Two, I want to know exactly where I stand financially. It goes hand in hand with being self-sufficient, I think. I mean, what kind of single woman trying to make it in the world doesn’t know where they stand financially? If I can stay in control of my life financially, then I can handle anything.
I was reading some news online today and I saw some articles regarding the Telephone Excise Tax Refund. Since I ended up owing this year, I’m holding out till the last minute to file my taxes. These articles, though, made clear something I was not aware of though (since I can usually get through my taxes without the instruction booklet except for the actual tax owed part). Just about everyone is eligible for this refund, and the IRS is making it easy for those who don’t have nearly 4 years worth of phone bills handy. They made a standard refund amount between $30-60 depending on your filing status, and no documentation is required if you take the standard refund. I quickly went back to my taxes, found form 1040 on the IRS website, and recalculated. Now the amount I owe is $30 lower than what I had originally thought. That brings it down from $105 to $75. Still not excited about having to pay, but two digits is better than three.
So for all those doing taxes (which should be everyone, unless you aren’t required to file US Federal taxes), don’t forget to take this deduction. It’s line 71 on the 1040, or you can find out more information here.
I stopped doing my own taxes a few years ago. My friend asked me last week why I don’t just use TurboTax. I told him that I’m too pretty to do taxes. He was stuck then. He couldn’t argue with me because then I’d get all puffed up that he didn’t think I was pretty. I’m good at changing the subject.
I used to do our taxes but I can’t stand it any more. Now we hire someone. I’m proud of you for doing your own!
I agree about doing your own taxes. I always do my own, but I do it through the Turbotax site now. I have done it with just a calculator before, though.
I am pretty well organized, and trying to get better. Especially since I couldn’t find my tax records from last year when I needed them!