Apr
01
2009

  Federal Taxes Done Pending Review

Terry came into my room to bug me about filing for an extension since I hadn't finished the taxes yet. But I didn't think there was any point, since you don't have to file for an extension until the 15th and I might get the taxes done before then. He didn't like that answer, but once I assured him that he would be capable of filling out the two lines required for an extension himself, he was satisfied.

But I went ahead and did the taxes today anyway. In retrospect, I probably should have prioritized painting the master bedroom closet door so I could get two coats of paint on today, but I guess I can just stay up late to do that. The Aura is ready for a second coat in about two hours, so I can do both after dinner.

So I calculated the taxable amount of our state tax refunds (none of it is taxable), and documented and recorded all our itemized deductions. Then I corrected my annualization spreadsheet to match the actual numbers pulled off 1099s, etc., in order to avoid an underpayment penalty. I'm hopeful I won't have to annualize for 2009, but it's the nature of our income that it is not evenly distributed throughout the year since neither of us is on salary. At least I've got a pretty sophisticated spreadsheet set up to calculate the annualization, I'll be able to use the 2008 spreadsheet for 2009 with minor modifications.

I have not run the comparison to find out if it's beneficial to file jointly or separately this year. It shouldn't be too complicated with the software, since I keep meticulous records of each of Terry's and my income and deductions. It's a real drag to have to do this, since we're not a couple who divides money and expenses up, everything each of us earns or spends just goes for both of us. I know several couples who have separate bank accounts, each is responsible for paying different bills, etc. but it just seems to me the mentality you'd have with a roommate, not with your spouse. But Terry and I have compatible spending habits and attitudes, so perhaps we're just lucky that way.

Terry said he will review the tax returns this year. And not just eyeball them for 90 seconds like he usually does, but he'll be the one to double-check my data entry against the source documents. That will be a help, it always takes me forever, it's one of the things that is very difficult and time-consuming to do with ADD, I check the same numbers over and over, and I have to do this in order to get it right, since I can mix up numbers accidentally, and I've learned from experience that the only way I can feel comfortable with the accuracy is if I do quite a few checks.

I haven't even considered the state returns yet, but they're not so straight-forward this year since in 2008 Terry was supervising so many different offices I'm not sure what his New York nexus was-- technically he was no longer employed by his AFS subsidiary in NY but by the larger division based in either Salt Lake City or Minnesota (the W-2 says Minnesota, but the office is in SLC). I guess I'll make it a goal to figure out what states exactly I'll need to file for 2008, then prepare the extensions. While I figured I'd be able to finish Federal before the baby arrived, I'm less confident about finishing all three (or more) state returns. Because at least two of those (NJ & VA) are definitely married-filing-separately, I have to prepare dummy Federal returns (unless it works out that it's actually cheaper for us to file MFS again, in which case I have to prepare REAL MFS returns) in order to do the state returns. . .

Aren't you glad YOU don't have to do my taxes???