I have just finished filing my federal and state income taxes. I used an online tax filing site, Free Tax USA. I like their interface. (I am not an affiliate of Free Tax USA! I just like their service.)
After creating a user name and password, I was guided through a step-by-step process, entering my contact information, income information, deduction information, etc. I chose to file electronically. The entire process took less than two hours. If you choose to file electronically, you will definitely need a copy of your prior year’s return. I live in Georgia, so I chose to file my state tax return as well. I ended up paying $19.90 to file my Federal and State returns.
I always print out 3 copies of my tax returns and I save PDF copies on my hard drive. I keep 2 copies at home and 1 copy at work.
I will receive a total refund of about $2000. I am surprised that my refund will be so high. I ended up with a few “unexpected” credits and deductions. While it is a bummer that I “loaned” the government this much money, I’ll be sure to put the refund to good use. Most of it will be deposited in my Roth IRA, but a small portion MAY go towards the purchase of a new printer for our home office.
I am really tiring of the “loaned the Gov’t the money” plea. The facts are that many Americans’ ONLY savings come in the form of that check with the eagle on it. Show me the taxpayer that can plan his tax liability to within $100 a year and I will show you the next heart attack candidate. Stop feeling guilty over getting that annual check and go treat yourself to a well deserved dinner!
If most americans spend whatever they get back from the IRS on a well deserved dinner, it is no wonder that the refund is the only savings they have.
If you’ve read this blog at all, I think you’ll realize that NCN actually does care about his financial well being. Hence, he won’t blow that money on eating out, but instead will put it in his retirement account. Thankfully, it won’t be his only savings this year.
NCN,
The way Arizona forces us to withhold, it is virtually impossible not to get a refund. I came within a couple of hundred bucks on my federal return, but got back $1750 on the state.
Arizona also give dollar for dollar tax credits for certain charitable donations and you actually get back more than you give away.
An example, just one of several like it;
We get up to a $400 credit on the state return for giving money to groups that help the working poor (Salvation Army, Gospel Rescue, Food Bank, etc). We not only get the state credit for $400, but we get to take the $400 as a federal deduction, resulting in $112 saving on federal taxes. Give away $400 and get back $512. Weird.
I hit my federal within a couple hundred bucks. I use an Excel spreadsheet to track my taxes throughout the year.
The Arizona state taxes are so odd that it is difficult not to get money back. They force people in the 25% or higher marginal federal bracket to over withhold. We got back $1750.
Sorry, Joe, the dinner reference was meant as a token. The Sarcasticynic has frequently used his check to pay off credit cards and such. But don’t you find the Gov’t loan argument a little overused?