Apr
14
2012

  Stopped the Insanity

Of course I'm not going to get these taxes done on time. I let T persuade me to just do a good estimate so we can pay the proper amount with our extension. His idea was better than both my Plan A (finish taxes on time) and Plan B (file for an extension just assuming we owe nothing like last year).

It's a good thing I went with his plan, since we do owe money. T didn't think we were going to make that much in interest, so we wound up paying taxes on the amount we converted from our traditional IRA to Roth. But it was still at the 10% rate, which is way less than it would be in future years if T actually ever gets a paying job again.

Curiously, we owe nearly the same amount for both Federal and State. I'm so used to owing way more in Federal taxes that it makes me wonder if I did the estimate correctly. Regardless, I'll write my checks, file the extensions, and be done with it.