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Working on my taxes

February 3rd, 2007 at 05:49 pm

I started to work on my taxes today. I'm very good about putting all tax-related items in one folder in my desk drawer throughout the year. Then when tax time rolls around, all I have to do is sort through that one folder and put things together. Makes the job so much easier.

Once I have all my 1099s, I sit down and get organized. I do not do my own taxes. My father was an accountant. When he was alive, he did them for me. Since he died, my cousin, who now runs the family accounting firm my dad and uncle started, has been doing them. He does charge me, but at a considerably reduced rate. Last year, I think I paid $80. It is well worth it to me as i want to be sure it is done right and I have a professional standing behind my return.

My next step is to scan through my checkbook register and my CC statements to check for tax-related transactions. I started that earlier and will probably finish up tomorrow. Finally, I need to compile my ebay sales info. Then I'll call my cousin and set up an appointment to meet with him and give him all the data.

I'm hoping we come out about even this year. It seems that no two years are the same. Just when I think I've got it figured out so that we don't get a big refund or owe much, something changes in our financial situation. For 2006, it was my wife signing up for the 403b plan at work. Since she was putting 80% of her salary into the plan for the last 3 months of the year, that will certainly alter her taxable income. I'm hoping that balances out the $7,200 in dividends and capital gains that one of our taxable mutual funds paid this year. Time will tell where things end up. I'll report back in a few weeks after the returns are completed.

2 Responses to “Working on my taxes”

  1. livingalmostlarge Says:

    What do you think is the going rate for having your taxes done? I paid a lot last year but this year I'm wondering maybe around $300? Last year it was $575. A lot, but two states, buying, selling homes, and getting married, and visa stuff, it was a painful thing.

  2. vsjhoc Says:

    Mine was somewhere around $450 last year -- first time I had used an accountant, so they had to input everything into their system, first time I had a home-based business, etc. Well worth it. Plus you can deduct the accountant's fee the following year if you itemize.

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