Weekly Thread- TAX TIME!

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Mommyin0406080912's picture
Joined: 02/16/08
Posts: 1644
Weekly Thread- TAX TIME!

Well ladies it's that time of the year! Doing the taxes! Fun times!

Trying to be frugal and taxes sometimes don't mix. Like, hubby and I pay someone to do our taxes each year. We have had the same man for 6 years and we love him! We pay about 200-250.00 each year. We both feel having someone do them is better because we don't want to make any mistakes. Hubby has 401k papers and school papers and what not and we don't want that to get messed up.

Now we do get a refund but once hubby becomes a lawyer that will change, but to me 200-250.00 is alot of money that could be spent on something else ,but for this situation we will do it.

So do you file your own? Have a person do it? If you get a refund do you save it and add it into a monthly budget?

alwayssmile's picture
Joined: 08/26/07
Posts: 14483

We've always filed our own. I do them, usually over a weekend. Never had an issue.
We just take the refund and put it into savings for whatever big item we're saving up for.

ange84's picture
Joined: 12/28/09
Posts: 6564

I pay someone, but I have had a difficult situation the past few years with a bonus from work and saving for a house deposit which has meant no refund so paying someone has helped ensure what I owe is as little as possible. Ax time is July here, and last year I got money back which was enough to pay my rates for the whole of this year, so hopefully I get that amount each year because that eases some stress on us. Hubby,s are way overdue si when he finally does them he will be paying back some accounts and also we get a bunch of money owed to us from childcare so it will be quite th exciting to get all that extra money

Joined: 01/28/03
Posts: 105

My DH does ours. We do get a refund, but the last few years we've used it to pay down debt. About half will be used for that this year, the other half will go to savings for our mid year property taxes. I am crossing my fingers that next year we can use it for a trip with the family or something.

HockeyTownMom's picture
Joined: 05/20/02
Posts: 417

On top of taxes, it's bonus time! With the bonus we're paying off our new camper and dh's car. The taxes are being saved and will probably go towards our closing on our house.

We have a tax person we use.

Mommyin0406080912's picture
Joined: 02/16/08
Posts: 1644

This year we will be using the money to buy a second car. We have been a 1 car family but it's becoming hard since my husband has school and work and I have things for the kids to do. We used to be able to do it with 1 car but my husband is going to be starting his 2nd yr of Law School in the fall and they have field trips! Smile And he needs a small car. Plus it will help with gas, I can take the small car during the day when he is not in school and I have 3 kids in school I can use it to run to the grocery store and what not.

Joined: 09/02/05
Posts: 994

Hubby files ours since 2008....we use TaxAct which is put out by the IRS. Federal file is free and the state fee is minimal....I don't think we have paid more than $35 to file. Their software is simple and walks you through everything. We itemize with mortgage, medical, student loan and it is quite easy. We will be using our refund to pay off our car and then the rest will be used to pay down the student loan.

Mommyin0406080912's picture
Joined: 02/16/08
Posts: 1644

Janae I didn't know you were pregnant!! Congrats!!!!! Smile

ok back to subject! I will have to look into the taxact thing. We don't have a mortage but we have the student loans and the out of pocket school payments. I would rather pay 35! Smile

Joined: 12/01/05
Posts: 1000

We do free file, but I buy the TaxAct software ($14-ish pays for Federal and State e-filing), but you don't have to pay anything if you use just for Federal free file. I find the TaxAct software to be very user friendly. I have done my own taxes for the last 20 years, including some self-employment. We always get a refund because we have so many kids. We had a huge refund last year because of a special tax credit for adoption. We're still living off that while Isaiah is in the hospital, but we used about 2/3 of it to pay off debts. Usually, we get a couple thousand dollars (give or take). We usually have something we need or want to buy when the refund comes around, so we spend some of it and put some of it into savings to use as a need arises. This year's refund will probably pay for our trip to St. Louis in May for my nephew's wedding.

Breen31806's picture
Joined: 09/05/06
Posts: 1172

I file our taxes each year. This is the first year I am nervous with school credit, adoption reimbursements, business expenses, and some other things. But my mom looks over my taxes each year before we file. (She works for the IRS).

This year if we get a refund it will go finish the emergency fund and the rest will go to pay down our debt.

Mommyin0406080912's picture
Joined: 02/16/08
Posts: 1644

Last night we filed our taxes with our tax person. With everything it camr to 218.00. Our refund should be in our bank account feb 8th which will be nice. I did ask our tax person about doing it ourself on this taxact program for 14.00. He said it would be fine for us to file our own if we wanted but he would miss us ( and our money i'm sure lol) But he said 14.00 compared to 218 is a big savings. So next year we will file ourself and see how it works!

Joined: 12/01/05
Posts: 1000

Kebrina, I didn't realize you adopted. We have 2 adopted kids. We adopted from foster care, so we got the full tax credit for both kids last year. It was really nice, but they did audit us, and it took forever. (We filed in March and didn't get our refund until October.)

Joined: 09/02/05
Posts: 994

We filed our taxes this weekend and I can't wait to get the refund! We will have one less debt and will be able to bring our student loan down a HUGE amount! Woohoo! And it only took a couple hours and $14.

Breen31806's picture
Joined: 09/05/06
Posts: 1172

"2sonsplus1" wrote:

Kebrina, I didn't realize you adopted. We have 2 adopted kids. We adopted from foster care, so we got the full tax credit for both kids last year. It was really nice, but they did audit us, and it took forever. (We filed in March and didn't get our refund until October.)

Yes Domestic Infant adoption and she is only 12days old:) So last year you got the refundable credit? We aren't sure if they are renewing the refundable for this year. I've heard it will be a straight credit.

Joined: 12/01/05
Posts: 1000

"Breen31806" wrote:

Yes Domestic Infant adoption and she is only 12days old:) So last year you got the refundable credit? We aren't sure if they are renewing the refundable for this year. I've heard it will be a straight credit.

Oh, I thought you were claiming the adoption credit for 2011. We adopted in 2010 and got the refundable credit. According to this website the credit is not refundable in 2012 for special needs. http://www.nacac.org/taxcredit/taxcredit20122013.html

heatherliz2002's picture
Joined: 02/02/08
Posts: 2273

I'm way late on seeing this thread, but thought I'd chime in anyway. DH always files our taxes. I think in the almost ten years we've been married, we've gotten a refund only twice, due to DH having his own business in addition to his "day job." Since we almost always have to pay, we can't afford to also pay an accountant to do the taxes. DH does a good job, though :-).

Joined: 12/01/05
Posts: 1000

That's cool, Heather, that you DH does the taxes. Too bad about not getting any refunds. Maybe you need to have 5 kids, like I do. lol. I've been doing my own (our) taxes since my first job 20+ years ago. We've had some self-employment in there too, but not enough to owe anything, since they've been small amounts, and we had several kids at the time.