At This Blog Everyone is a Winner

Both the popular vote (reader’s) and the electoral vote (mine and my husband’s) have been heard and everybody won! I was ready to call it quits and spend the $36 to E-File but with the help of my readers I just saved that amount of money.

First, thank you so much to everyone that voted. Having the majority say to mail it in gave me the patience to spend the past three hours reworking my tax return on TurboTax online.
Second, HUGE thank you to the reader who suggested that I check with State Farm for free prep and e-filing. They carry our auto and home insurance so the offer was available to us. Reworking our return helped me catch a mistake that saved me $50 on our federal taxes. It also unveiled another form I had to file on my state taxes that cost me $100. Not a wash, but both returns are good now.

All in all this turned out to be a huge frugal flop. We ended up overpaying on the desktop version of Turbotax ($38) when we could have done the whole thing for free. But at least redoing them saved me the extra $36 I would have had to pay if I hadn’t asked for your help. Also, as much as I drum about checking your paycheck withholdings so you don’t get a huge refund, look at the one we are getting. In our defense, having a baby on the last month of the year added $1,000 to our federal. Also, for some reason I can’t adjust my state tax withholding too low. When I increase the number of deductions the amount withheld from every paycheck barely changes. So, we are in for another return from them next year. But I think I have adjusted our federal withholding enough to make up for this.

Oh! and this is where the money is going: $800 goes to youngest son 529 and $700 to oldest son 529. The rest we are saving for a possible trip to my home country. So that my family can meet my children.

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Comments

  • Anonymous

    Thank you for your posts. Its amaing how much we can help each other and it is exciting to find others who want to make the most of what we earn. What a relief to have taxes done. We always mail ours in as I dont feel comfortable with putting all our social numbers over the internet. I read the post about the stimulus rebate checks that will be coming in a few months and have read that these checks are an advancement of next years income tax refund and thus are not taxed because they part of next years refund. So if your income tax refund is normally $3700 and you get a rebate check for $1800 dollars this June then next year your income tax refund would be $1900 instead of the normal $3700. Its an advance on the taxes you will file next year. That is why you will have to file income tax in order to receive your advance on next years income tax refund. Is this your understanding as well? Thanks Denise

  • MoneyCommonSense

    I am not sure Denise. My husband sent me the link to an article that talked about this but I haven’t had a chance to read it in detail. I’ll have to look into it more carefully because what happens if you were not in for a refund next year but owed?

  • Anonymous

    I am still confused but after researching more articles on the internet , I am reading that is an advance on a new tax credit. And after reading the article at consumerismcommentary, I am thinking that it wont be deducted from my refund. I hope this is accurate information, because I’m trying to figure out how to budget this “rebate”. Thanks for your help. Denise

  • Anonymous

    You can sell the TurboTax software on eBay, so it’s not a total waste. I do this every year after doing my taxes. I generally end up selling it for around $20. Love your blog!