Taxes

For years, except for the 1986 tax year, when we moved to California, and recently, I did my taxes myself, by hand. The last few years I did it, I used TurboTax.

When we moved in 2006, the tax free capital gains, the transfer of our property tax base, and other complications had me going to a tax preparer. It has been worth it.

Not only was I never sure that I was getting everything back due me, even and perhaps especially with TurboTax, I hated doing them. Besides, the experience typically rubbed my face in it in some way.

When IRA's first came in, I was participating in qualified retirement/pension plans and was not allowed to save in them. Then for a few years I was. Around the time that I qualified for the IRA "catch-up," I was fortunate enough to be making just enough that I was no longer able to contribute again.

Now, throughout the year I throw everything that has a tax consequence into a folder for tax preparation. Then, I spend a few minutes sorting it into income and deductions. I spend a few more minutes going over it with my tax preparer and leave. Well, we both leave because he meets me in a temporary office in town. His official office is in a town about 15 miles away.

A few days later, I get an email with a password protected file that is my taxes. I respond that it looks fine to me and he sends me all my papers back with a hard copy and I pay him with a check in the return mailing that also contains my authorization to file electronically. It's not that much more expensive than Turbo Tax and I didn't have to do very much at all let alone avoiding all that frustration. Besides, I'm sure I get back more than I would if I had done it myself, possibly more than what I'm paying for him to do it.

Now the fact that I'm getting anything back is potentially a problem in that it represents an interest free loan to the government, particularly since both State and Federal governments are under so much water. This year, getting something back is truly a blessing and was basically unavoidable. My severance package paid me for half a year--at the rate I was making while working and the withholding was as if I were going to make that amount for the whole year.

A blessing this year will become a curse next--unless I do find job that will help me pay my taxes.