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.
Waiting to do my taxes...
February 28th, 2008 at 12:16 am
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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.
February 28th, 2008 at 06:53 pm 1204224791