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Filing our taxes today

February 2nd, 2010 at 08:30 am

Filing our taxes today. Tried to the taxact thing and it doesn't make sense to me. It said a refund of right around $1,500. We paid a combined $1550+/- in Federal taxes, and $120 in state taxes. Our taxable income was $36,000 before deductions. Property taxes ($1000), Making work pay ($400), and the Roth credit ($1,200) raised our deductions by $2,600. So standard deduction of $11,400 and personal exemptions of $7,300 comes to $18,700. Plus $2,600. That gives us deductions of $21,300. Makes our taxable income $14,700. So even with a 10% tax bracket, we should pay $1,470 in federal taxes. The new military spouse law makes it that neither one of us had to pay state taxes. So even if all this is accurate and right as to how the tax code works, which I doubt, we should only get a $200 return.

So I opted to make an appointment and have them filed on post today. I've done this the last few years as my first option and never worried about it, so I'll do it this year again. My question is if our return is almost the same as what we paid in federal taxes, should we just not pay any federal taxes at all? But then what happens if I end up owing next year and I have to pay penalties and interest? Irritating.

Anyway, the good news. This weekend we won 4 dugout box seats to a Royals game. My father-in-law is a huge sports fan, especially anything Missouri for college, and Chiefs/Royals. So he'll like it. As if I had a choice in who we take - soon as we won, my wife was on the phone with her Mom telling her about it. Not that I mind going with my in-laws, just that it would have been nice to talk about it. But hey, it happens.

And the highlight of my week. I ran a 14:22 two mile in the gym yesterday. I've never run that fast before in my life. To do that on my first day back to work after having only nominally worked out for the last 5 months was amazing. I don't know who was more surprised, me or my boss. But I only work M-W-F 7a-3p. Pretty sweet stuff.

But I need to go get DW from dialysis and go file our taxes. If we do get the $1500 my basement will get finished in the week or two after we get it.

Yes, I know the tax return should go into our Emergency Fund. But DW and I are both sick of having a half finished basement that can't be used for anything. I can finish it and move my weights back down there and have my cable and DVD's back to watch while I work out. Cross your fingers.

2 Responses to “Filing our taxes today”

  1. creditcardfree Says:

    Well, I think you are doing your calculations a bit wrong. If your AGI is $36000, you subtract the standard deduction and the personal exemptions and get a taxable income of $17,300. The first $16,700 is 10% or $1670. The next $600 of income is 15% or $90. You tax is $1,760. If the roth credit is $1200, then you subtract that from $1760 to get $560 for your final amount of tax.

    To determine your refund, you add the amount you had withheld $1550 plus the making work pay credit of $800 (your wife qualifies even if she didn't work). The total is $2350.

    $2350 - $560 = $1790 tax refund. My refund amount may be off from the software you used because of the roth credit...I'm not sure if you figured that amount correctly.

    It may be best to get the free filing help, but make sure you look at the form so you understand how things are subtracted and when.

    I did not include your property taxes, because these can only be deducted if you itemize, rather than take the standard deduction.

    Your withholding may need to be adjusted to avoid paying in too much. Can they help you with that on post, too?

  2. ceejay74 Says:

    I thought I saw there was a third option this year, where you can deduct your real estate taxes even if you don't itemize... Not sure though; since I itemize, I didn't pay much attention.

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