The Tax Man Cometh...and Usually Taketh Away
Apr 17, 2008 at 02:00PM
Doug in Money

taxes_01_sm.jpgBut not this year. And not because I wisely and purposely planned it that way.

Sure, I’ve always been pretty organized, at least when it comes to finances. I kept meticulous records in envelopes and on ledger sheets until the advent of financial software, and in Quicken since. With just a few mouse clicks, I could tell where every nickel had gone, when, and why.

As a result, planning for and paying our income taxes was usually a relatively painless experience. And by design, we always owed Uncle Sam around a hundred dollars, about the same for the good State of California. Occasionally, we’d accidentally get a small refund.

But something changed during the last few years and we’ve owed more than anticipated - way more - and I think I know why. It’s because I’ve become lax. I haven’t kept up with the necessary planning, analysis and adjustments. Maybe the so-called “marriage tax,” had some effect, I don’t know. Anyway, it’s become an unpleasant annual surprise, one I’ve deliberately avoided facing until the very last minute.

This tax season was no exception. I gathered my tax related receipts, printed out the relevant reports and delivered them to our accountant on April 14, expecting we would once again owe taxes. After a mild grimace (he’s become accustomed to my late arrivals), he promised to call me the following day with an estimate of just how much.

But, quite unexpectedly, we’ll be receiving a small check from the State and, even more surprisingly, a fairly decent Federal refund as well! Shazaam! And just when we desperately need to replace our refrigerator and aging computer! A pleasant surprise for a change. Couldn’t happen at a better time!

I suppose if there’s a lesson to be learned from all this, it’s that I need to regain my former state of financial order, recalculate our future withholding so as to owe just a few shekels each year, and deal with the unavoidable future paperwork much earlier. It always feels better when we’ve planned well and know exactly what to expect.

So that’s my commitment. Ask me next April how well we did.

Article originally appeared on inessential musings (http://www.inessentialmusings.com/).
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