Wednesday, February 1, 2012

Taxes Preview: Yikes!

We have an appointment with our accountant February 28th.  I couldn't wait that long and I had almost all of my paperwork so I went to TurboTax online.  After putting in my information, it showed that we owed about $50 to state.  While that may not seem alarming, we paid in over $5000 more in federal income tax than last year.  We got a refund of about $1500 last year.  I had more expenses last year but still.  We were hoping for a refund in the amount of $4000 to $5000 range. 

I know that the goal should be to not get a tax refund but I'm commissioned, meaning that some months I make a lot more money than other months.  For the months that I make more commissions, I'm taxed like I'm making that amount the entire year.  It's impossible to have it be completely even. 

I'm really crossing my fingers that Turbo Tax was wrong, either missing something entirely or I entered something wrong.  It is so nice that we have an accountant to double check everything and make sure that we are getting the most refund that we can get (or pay in the least amount possible.)

Has this happened to anybody else?  You thought you were getting an awesome refund and found out the exact opposite?

Crossing my fingers this month :)

4 comments:

  1. Yes, in previous years I have the same experiences. Now, I have no exceptions of a refund.

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  2. Ahh yes I know that feeling. I hope that you get back the amount that you thought you were!

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  3. We also have irregular withholdings due to my husband's company sometimes having out-of-state work, overtime, etc. In addition, we have four exemptions but only claim three on our withholding.

    I appreciate having a nice fat tax return. Sure, you're making an interest-free loan to the government but unless you have an immediate need for it, you're not getting any interest for it anyway.

    Last year I ran some preliminary return estimates and was expecting around $7k back. Imagine my delight when my accountant handed me my return with $9k coming back!

    It's not over until the fat lady e-files. Wishing you the best!

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  4. Each month I update our spread sheets with how much we have made and paid into taxes so we can see if we are okay... when we start getting to the point where it looks like we owe money, we change our withholding or we start setting money aside so we aren't scrambling next minuet.

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