I use tags to mark taxable income in the miscellaneous income category
I have separate categories for deductible and non deductible charitable contributions
For my rental property, I use categories for expenses that match the Schedule E
Other categories that break out tax items include car registration fees, contributions to 529 plans, IRA contributions
You are right though - you are right.
As the biggest nerd to ever nerd, I love filing my taxes. Even after I had to had it over to a CPA because it was too time-consuming.
To make life easier when it’s time to break it all out and make it happen, though, I consider it tax prep-time all year long! When I update my real estate income or have expenses, it goes into the spreadsheet. When I have business expenses, I log the information as soon as I’m back at my desk. I’ve developed a spreadsheet with line items for all my recurring items and just fill it in as soon as I have the relevant items, so by the time I need to file, almost everything has been scanned and logged.
At this point I’m just anxiously awaiting official forms that won’t be generated and sent until the end of January: mortgage summaries, W-2s, real estate summaries, and a few 1099-Ms.
Credit Karma started offering tax filing for free this year.
@Lars-Christian, we are pretty good in the UK as well.For those of us, who get the majority of our income as a salary or pension, it arrives in our bank account with tax deducted. As for the rest, dividends, interest, etc, the majority come with the tax deducted, so the opportunities for additional taxes are limited to any ‘side hustle’ income. it makes filling in the forms pretty easy at tax year end.
I love doing my taxes too! Spreadsheets are underrated.
I know i’m a weirdo, but I absolutely LOVE doing my taxes. I get so excited about getting all the 1099’s and throwing the numbers into my tax software.
I’ve actually considered tax preparation as a side gig just because so many other people just don’t like to do it.
Oh! I’ll have to check that out! (At least for my readers, if not for my own filing.) I’ll probably do what I did years ago when I reviewed TaxAct and H&R Block’s online tax prep software: also put all of my info into TurboTax and see if the numbers come out vastly different.
CreditKarma sells your information though. it’s not a free lunch, as they say.
I don’t think that’s completely accurate-my understanding is that they use the information to make decisions about advertising. It specifically states that they don’t sell your information.
I have started getting some of my documents for taxes and have been inputting them into TurboTax as I go along! Taxes seem to be a breeze this way for us. So far, I’ve received a 1099-INT for a savings account, my church taxable donations, and my childcare expenses from our previous daycare we used last year. I love how TurboTax learns what you need and then reminds you to check for them each year. I use that as my guide to collecting all my data.
That’s cool that Turbo Tax learns what you need.
I’ve never used it but can see how helpful that would be.
We pay someone to do ours, so I guess she is learning what we need too.
Well it basically goes by what you used last year and then asks you about life changes. It’s pretty impressive! I’ve used it since like 2005 or so?
Ohh and we got our w-2’s yesterday so now I have a better idea of what’s going down… just waiting for another 1099 and then investment tax forms and we should be good to go!
Got my 1098 already too!
I’m the same way. Turbo tax makes doing taxes so easy and it’s fun to do some digging on the numbers to see how we fared form previous years!
Glad to know I’m not the only one that geeks out at tax time!
@stephonee, that would definitely make a good review piece.
What I’ve done in the last few years is just grab a bottle of my favorite beer, and have at it. It makes it a lot more enjoyable this way. And though I try to set up my allowances so that I come as close to $0 owed/returned as possible, I still typically get a small return of ~$100. So I basically look at tax time as basically an hour to 1.5 hours of work for $100. Not a bad rate.
Last year I owed $11. It was the closest I ever got to $0 and I was so happy about that!
Although I’ve also had the unfortunate experience of owing a lot after (1) finishing my MBA and paying off all my student loans in one fell swoop and (2) getting a 15 year mortgage. Forgot to change my withholding then, oops
I have to pay someone, I’m not a DIY tax person but it’s always a flat rate a soooo worth it for my sanity. So my trick is making my appointment in the first week of Februaryy. By then most tax info is available online for my accounts. What isn’t available I scan and fax or email to my person as soon as I get it and files right away. I keep a small box in my cupboard where I toss any receipts or info along year that I need to give him. Takes about an hour to get all of it in shape to send him.
This is just about the same as what I do!