February 26th, 2020

moneybear

Annual Tax Post

It's that time of year again where I bitch about doing taxes. This year it seems to be pretty straightforward. I told my financial planner last year that I had really screwed up, and he was amazed that I still did my taxes by hand. The one year I tried TurboTax I found it a complete waste of money. While I still owed quite a bit this year, I had a bit of a surprise. While figuring out how much I owed for my investments, it turns out that the amount of tax I owed on dividends was zero. It must be part of Trump's tax breaks for the rich. It actually makes sense if he wanted to help out older folks who get income from investments. I just couldn't believe the formula as I filled in the blanks. Our income was down this year because I have been socking away so much in my 401K. Since our earned income wasn't that great, it entitled us to keep more of our investment profits. Woohoo! I'm just hoping the IRS doesn't come back and say "Ha ha! just kidding!"