The tax man cometh
April 11, 2016
Life, death, and taxes, my friends. But unlike the other two, taxes happen on schedule every year.
And this year, boy o boy am I not so ready.
Life doesn’t discriminate
Between the sinners and the saints
It takes and it takes and it takes
And we keep living anyway
– Wait For It, Hamilton
In 2014, I started using a CPA to put together the return itself. I still compile all our financial documents and a spreadsheet listing everything, including our itemized deductions, so really the CPA just has to plug the numbers in and advise me on the trickier parts like the investment property.
It feels absolutely silly in retrospect to feel guilty over hiring it out but it was hard to fight the feeling that as the Family CFO, I was abrogating my responsibility by doing so. Of course I could do it myself but I don’t have that kind of time to spare, and the headache was getting to be too much. See? Even now I feel like I have to justify the decision.
Never mind. This year, I’m extra grateful for making that decision because what we’re looking at would have been much worse at the butt-end of 20 hours of tax agony.
It’s a long story, and I can’t get into the specifics of it, but we have an on-paper only “income source” from a family thing, from which we don’t derive any true income. This year, there was a huge one-time income bump that we wouldn’t see but, of course, would impact our return. I knew we’d owe something. That part I was braced for.
The other part, the first draft of the return, staggered me. No, let’s be honest, it knocked me on my ass. Might have actually stopped breathing for a few solid minutes.
We would have had a modest tax refund this year from both state and federal. Instead, the bill totals up over $13,000. It’s not that we failed to pay quarterly taxes, this is truly a one-time thing, and it won’t be a problem going forward after this year. That’s cold comfort in a cold spring, but payment is due on April 18th this year, so, yay grace period?
We’ll have to use our long-term savings to pay that sucker, which sucks, but at least we can swing it. Meanwhile, let me sit down and put my head between my knees until the world stops spinning.
Have you filed? Are you likely to get a refund or a bill?