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Home > Waiting to do my taxes...

Waiting to do my taxes...

February 27th, 2008 at 04:16 pm

I use an accountant to do my taxes. I know some of you feel that's a waste, but it is something that I just don't feel comfortable tackling on my own. Our return is reasonably complex. Also, I do get a significantly discounted rate because my cousin is my accountant and my father and his father started the firm that he and his brother now run.

Anyway, I have an appointment with him for March 13th so I'm kind of in financial limbo right now. I've been letting some surplus money accumulate in the checking account because I know we will owe money but I don't know how much.

Last year, we got a $1,500 state refund but owed $3,000 to federal, so a net payment of $1,500. As usual, our situation changed during the year. My wife left her job in February and didn't work again until June or July when she took a part-time position. So our income was down about $15,000 for 2007 compared to 2006. My self-employment income (surveys and ebay) was up for 2007 as were some investment returns. So I'm waiting to see how it all plays out and what we end up owing.

I've started our 2008 Roth contributions, but until I know how much cash I need to come up with for taxes, I don't want to tie up too much in the Roth. As soon as taxes are settled, I can really start attacking the Roths. I like to have them fully funded by June 30th.

7 Responses to “Waiting to do my taxes...”

  1. pfodyssey Says:

    Good to see you are maximizing your money by not getting a huge refund (alas, I have not followed this sage advice yet). If you're not in a pinch financially, I might reconsider funding your Roth IRA now while stocks have taken a beating. Of course, it's anyone's guess where they'll be come June (could be up or down).

  2. JanH Says:

    I can understand your wanting to use an accountant. My memory is faulty, but I remember at least one doctor return from when I worked for an accountant (mainly because the doctor forgot to send it in after he received it from us, lol). It was a bunch of pages!

  3. disneysteve Says:

    pfodyssey - I am funding the Roths. I've already sent in $2,400 of the $10,000 total, so I'm a quarter of the way there. And, as I said, once I know the tax bill, I can work from there.

  4. baselle Says:

    I'm going to get an accountant to do my taxes this year also. With the inherited money and property, my situation has gotten a bit more complex & I'm nervous about doing taxes myself in 07. My appointment is the 7th. Any tips?

  5. compulsive debtor Says:

    I've used an accountant for years. I have too many complicated things going on with my taxes. Plus, neither my spouse or I are math whizzes (obviously) so we've decided to leave it to a pro.

  6. disneysteve Says:

    baselle - Best advice I can give you is to have all of your documentation in order before you go. I have a folder with a bunch of sub-folders inside. One for income statements, one for investment statements, one for charitable donations, one for survey income, one for ebay sales, one for medical expenses, etc. Before I go to the accountant, I organize each folder and, on a separate sheet, total up the items in that folder. For example, last night I broke down all the ebay sales - total sales, postage paid, ebay fees, paypal fees and cost of merchandise sold. In the medical expenses folder, I have it sorted by type of bill and have each category broken down - doctor copays, prescription costs, eyeglasses, insurance premiums.

    The more organized you are going in, the easier the process will be for both of you. And if your accountant is charging at least in part based on time spent, better organization on your part will result in a lower fee on his part.

  7. Broken Arrow Says:

    Hmm, well, if you can well afford it and it is reasonably complex, then I don't any problems seeing an accountant. That's what they're there for eh? Big Grin

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