The do it yourself tax season

06. April 2013 · Write a comment · Categories: taxes

Almost every year since the early 1990s, I have been determined to do my own taxes. Certainly if you can go to Costco and buy a copy of TurboTax, doing taxes yourself just can’t be that hard, right? But every year, come mid – April , I curse myself for wanting to save a couple of hundred dollars and trying to figure it out by myself.

This year, I had the distinct disadvantage of adding my mother in law to the mix. Fortunately, she didn’t sell her house this year, so her taxes were fairly simple. My job is in Massachusetts, and we live in Connecticut. So that’s Federal plus two states, only one state is free with the “premium edition” of the software. The second state costs around $45. So now we’re over $100 if my time was free. Adding the Georgia taxes as well this year makes it almost $150. Not a good deal at all.

Next time, we’re going to the right professional and having it done right and for not that much more money.

It might be the happiest day of the year…

23. March 2008 · Write a comment · Categories: stock, taxes

Well, maybe not YOUR happiest day… but my happiest day each year is when I have electronically transmitted my taxes to the US and state governments. It typically means that I can sit back and wait for them to accept, then wait for the cash to hit my checking account. Maybe I should wait for the acceptance email from the government to be happy, but at least I’ve figured things out and they are out of my hands. Last year, I wasn’t so lucky…

First, let me say that there is an up-side and a down-side to non-qualified stock options (NQSOs). Employee stock purchase plans (ESPP) are generally good, so long as you are earning money. This year, my ESPP lost big time. Stock was high at the beginning of the year before a steady decline during the year. So, I decided to cut my losses and sell what I could, then transfer the cast to my broker since he couldn’t do worse for my return if he put my money anywhere and went on vacation for the entire year. ESPPs are also really easy for taxes since you can get all of the information you need from the company that handles them.

NQSOs are a different beast. You see, you get an option granted years ago. It vests a couple of years later, and when you roll it into your broker, then decide to sell it (see the steady decline note above), you actually have to figure out the details from a transaction that happened years ago. Fortunately, I have sold the last of it, I think, so shouldn’t have to go through this nightmare again. What a way to spend Easter…

Getting back to the “I wasn’t so lucky…” comment above…

In my fret to get everything done for taxes last year, I filed right about at the final day, but electronically so I could get my refund as soon as possible. Imagine the fear when the Federal Government returned a status as REJECTED!!! It took me a while but found out that some schmuck had used one of our SSNs in their return, or, more likely, that they filed a paper copy and either they, or the typist at the IRS, fat fingered one of my kids’ SSNs. In any case, I finally heard from them after having to print and send via snail-mail the return. Weeks (could have been months) later, I got my refund. This year, I planned on submitting my return early, but had to deal with the damned NQSO and figure out how to cost that out. So, I will find out in a few days if my return is accepted or, God forbid, rejected again. At least I’m early this year so can get my nice refund early. Three weeks is early, right?!?