February 21st, 2019

moneybear

Tax Time! - 2019 Edition

It seems that every year I make a post about doing taxes. So I figured I would keep up the tradition. This year's edition will be much more calmer than in previous years. Things were pretty much straight forward and I went back to doing them on my own. Last year I used TurboTax which turned into a shitshow. I also wrote about my brilliant strategy of claiming more exemptions to maximize my take home pay and reduce any refund amount. I would rather owe the government money than be at their mercy waiting for a refund. But my plan backfired because I forgot to think about dividend income which doesn't have taxes taken out. So I ended up owing a bunch. I also think TurboTax didn't calculate something correctly which added to the frustration. So this year I decided to go back to good old pencil and paper. The result was that it wasn't all that difficult. I sold some stock, but it was almost a wash since a sold a winner and a loser which amounted to almost nothing. There were no funky cash disbursements only dividends. The dividends were the only pain in the ass because you have to fill out a large worksheet to figure out your taxes. But since that meant a lower tax rate, I was happy to go through the motions. I have been hearing horror stories about people owing huge amounts this year do to the tax changes. Nope. Not on my end. In fact I'll be getting a small refund for the first time in a few years. I'm glad I changed my exemptions back to the way they were. Everything worked out just right.