Social Media

Thursday, April 03, 2008

Taxes and budget

Well I got my taxes back from the tax preparer. I took some cash out of my emergency fund/insurance savings to pay his ($110) fee. Kurt is wonderful. He is a Dave Ramsey ELP (Endorsed Local Provider). He was able to get me a $531 Federal Refund, although I owe the state $74. That means that my IRS debt will see a substantial reduction this year. Especially considering the $600 stimulus tax credit coming in May. Altogether, I will see that particular debt decrease by $1100. Meaning, 1/3 of my tax debt will be gone this year.

I expect to use some of the savings money to pay off some of these debts, replace the laundry machine that went out on me (with another used one), get the bathroom door repaired (estimate $50) and hopefully get the tree limbs off the roof of my neighbors and my homes and away from the power lines. Not sure, I will have enough funds to do it all, but I am going to prioritize and make a valiant effort. I am expecting to have Amerifirst paid off by May 1st.



ItemBudgetedActualOwed
GIVING

Tithe/Charity$??
$???
subtotal
$??

HOUSING


Mortgage$80
$791.51
Insurance
$0

Maintenance$0

Taxes
$0


State Income Taxes
$74

subtotal
$154

$791.51
UTILITIES

Electric
$80

Gas
$80

Water
$30

Internet
$35
Phone
$0

Cell phone
$50

Trash
$15.50




subtotal
$290.50

FOOD

Grocery$50




subtotal
$50

Transportation


Auto Gas$70

Insurance
$0
Maintenance
$0
Tags & Taxes
$0

Car Payment
$400

$9,537
subtotal$470

$9,537
CLOTHING

Sunday Best
$0
Work
$0
Everyday
$0
subtotal
$0

MEDICAL/HEALTH


Prescriptions
$0
Deductibles
$0
Eye Doctor
$0
Insurance
$0
subtotal
$0

RECREATION/Memberships

Entertainment
$0
Dating
$0
Optimist Membership$40

Farm Bureau Membership
$0

Subtotal$40

DEBTS


Providian Credit Card
$0

$0
Fingerhut
$10

$1,000
Black Gold Insulation
$0

$0
IRS
$531 (tax refund)

$3,795.52
Subtotal$10

$4,795.52
TOTAL$940

$15,124.03





---
go ahead share your thoughts with me now.






Get Paid to Sign Up, Refer Others, Read E-Mail, Complete Offers, and More!
Posted by Kevin Surbaugh at 4/03/2008 11:34:00 AM
Labels: , , ,
Reactions: 

13 comments:

  1. is there a reason you used a tax preparer vs doing it yourself for free?
    ReplyDelete
  2. Hi Prince - I'm guessing you are using a tax preparer because of the K-1. I think you could do this yourself and that $110 would have helped your debt. But we all must do what we are comfortable with.

    I suggest - with a copy of the return your guy gave you - go online and use a free tax return service and try to plug the numbers in - see if you come close to what he got - I bet you match 100%. Then you will know for next year.

    Also, you mention that trees are growing near power lines - around my home the electric company takes care of this - FOR FREE. Give your local electric company a call and see.
    ReplyDelete
  3. correct it is the K-1, but not completely. I am sure an online or software service would have the K-1. There is another form that I have to fill out for a state tax credit, that is a very rare (in my case related to the K-1) that I am not sure that any of the public software programs or Turbotax.com has. Not to mention, I am not sure if I trust myself doing my own taxes. Although, if I had a printer here and was sure the program had the k-36 in the state forms.
    ReplyDelete
  4. the electric company will do it for free, but they have to be closer to the power lines and not just over them. Right now the lowest ones are rubbing against the shingles on both houses.

    also from talking to them, when they came trough last year, my trees are to far from the main power lines. The lines these trees are over are the ones that come off the main line to the house.
    ReplyDelete
  5. Kevin,

    I can't believe you paid that much, I would have done your taxes for free, why didn't you do them yourself using turbotax or taxact? if your going to be a financial guru you need to know how to do taxes.
    ReplyDelete
  6. anonymous -
    I believe he answered taht question.

    He said he had a k-36 which is a rare STATE form for a RARE state credit that he can get because of the particular business (k-1) that he is involved in. As such, he wasn't sure TurboTax would have the k-36, when he started the state portion of the taxes. Further he said he DIDN'T have a wrking printer to print them.

    I certainly understand where he was coming from with those two reason alone. Finally you would have done them for free? Does he know you? All you are is someone shoting off their mouth without giving so much as a nickname. It's not like he requires you to have a blogger acount to comment, so what is so hard to make yourself credible and give yourself some sort of nickname? All you have to is tick name/url and put in some name, even if you don't have a url. You don't even need an email to comment with name/url. Think about it. What is so hard about that?

    - George S.
    ReplyDelete
  7. Thanks George. The fact is the K-36 is so rare, that even the tax preparers have to research it to figure it out. Of the 3 preparers I have used since having to file it, none have had it before me.

    If a form is so rare that you may be the only one a particular tax preparer has to prepare it for, wouldn't you question whether a program such as TurboTax would have the form within it's program?

    Yes, I could have used the $110 to buy a good new printer. Then I would have to buy the software to install on my computer. That is if it would work with my computer that runs Windows 2000 (pro). Or pay Turbotax online to use the online version. I used them one year. However, that was when my taxes were much simpler. Likewise when they were simpler, I used the free VITA (Volunteer Income Tax Assistance) service to prepare my taxes when they were much simpler. Once, I got the K-1 and K-36 they became much more difficult. The K-36 is a telecommunications (and railroad) credit that is available only on my state taxes and not my federal taxes, that I am eligible for because I now file a K-1 on the federal level.
    ReplyDelete
  8. Don't forget, now that you filed your taxes you will get an additional 600 from the government in May.

    HS
    ReplyDelete
  9. I hope you don't mind me asking this but I've noticed on your budget that you don't include your tithe/giving. Dave Ramsey (who you mention often) teaches to give first and yet you leave your giving area blank. Is there a reason why you do this?
    ReplyDelete
  10. Joyce -

    no, I don't mind. It is a question that comes up from time to time, especially among newer readers. My decision is based on the Bible, and one that some Christians disagree with me on, because I take it on to my taxes as well.

    The Bible says to let your giving be done in secret with only God knowing. The Bible also talks about the pharisees and how they bragged about their giving, such as the example in the widows mite, where they gave little of their great wealth but the widow gave all she had. There is also the example of the pharisees blowing their own horn to call attention to all their great works.


    --- "So when you give to the poor, do not sound a trumpet before you, as the hypocrites do in the synagogues and in the streets, so that they may be honored by men. Truly I say to you, they have their reward in full. "But when you give to the poor, do not let your left hand know what your right hand is doing, so that your giving will be in secret; and your Father who sees what is done in secret will reward you. - Matthew 6:2-4 (NAS) ----

    It is difficult at times, because we all like that pat on the back, the affirmation from others, but it is important to me that I obey God (wish I would obey him as strongly in other areas as I do this one).

    For a more detailed post on the subject click here.
    ReplyDelete
  11. Hey guys, lay off Prince about having someone do his taxes. Because we're all trying to get out of debt and be debt free doesn't mean we have to take on the burden of doing everything ourselves, all in the name of frugality. Consider it helping out the local economy. If we all had that mentality then every time we tried to sell our own services to somebody, we'd have to follow it up with, "Hey, I'm the best 'fill in the blank' in town, but you could just do it yourself instead of helping me make a living!"

    Also, Prince, I'm glad you answered Joyce's question the way you did, because I am getting ready to post an entry in my blog about our current budget and hadn't thought about that. I don't think I would take it as far as not deducting it from my taxes (Matthew 22). But at least you chosen a principle for yourself and are consistent with it. Bravo!

    But anyway, feel free to check out my blog here
    ReplyDelete
  12. Thanks for the the useful information in your site. In additional, there are some others informations on Avoid Bankruptcy and Free Your Debt . Get Refinance Loans , Secured Debt Consolidation or Debt Settlement Advices.
    ReplyDelete
  13. taxact is free and offers free electronic filing. Yes, them and others have all the forms you need. I believe getting out of debt, and getting rich, is doing for yourself. Just my opinion. Society tells us too much that you can't do things yourself. (Have someone do your taxes, get a real estate agent to sell your house, have a lawyer write your will) If this country took some more initiative we would not be in the sorry shape we are in now!
    ReplyDelete

We encourage comments from anyone whether they agree or disagree however, opinions that are derogatory, attack other users, offer unsubstantiated facts or are offensive in nature can and will be removed. We are not responsible for the content posted in this comment section. Obvious spam will not be approved!

Subscribe to: Post Comments (Atom)

Search our Site

Google