Filing complete!
Another tax season down and most likely many more to go. I filed about a week or two later than I would have liked this year, but life got in the way. It would be nice to not pay taxes, but that would require some extreme measures. I'm neither interested in living off the grid nor attempt to be an untouchable elite.
I sorta miss the simpler days as a college student when things were easier. All I ever had to deal with was a 1040. For those of you who are unfamiliar, that's a tax form in the US. It was easy to file my taxes within the first two weeks of February after I receive the W-2 forms.
Then, taxes got complicated as I dove into the stock market, precious metals, and whatnot. My worst experience was dealing with Schedule K-1. I learned very quick after that one year and liquidated anything that would produce one. Besides the annoyance that comes with keeping track of more forms, you prolong your agony. Many K-1's are not available until later in March.
I have never gone to an accountant before. In fact, I've used TurboTax for as long as I remember. Some claim that it's not as sharp as a specialized person, but I wouldn't know the difference. I may consider trying that one of those years to enlighten myself.
For average joes like me, it's good enough. I can import brokerage documents into the program. I can use tools like Bitcoin.tax to help me compile my crypto trades. I can even have an accountant through Turbo Tax to review my files.
Of course, as time goes on, my finances become more and more complex. This year, I decided to purchase their audit protection perk. I've been more adventurous this past year and I wanted to cover all my bases. In addition, I have been and will liquidate a fair amount of holdings this year to realize gains. So, I definitely will want to have that service by my side next year too. I don't want the IRS to spoil my party after I paid my dues to Uncle Sam.
The reality is, most of us cannot fight the tax man unless it's time for the system to collapse. So, some preemptive measures is always better than none.
The good news is, I should receive a decent amount of tax refund. I will definitely celebrate a little, put a portion into savings, and invest the rest. Is crypto involved? You bet it is.
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Good job. I'm going to get started on mine soon. I was hoping the stimulus payment would come out before I had to file. But, I'm going to file anyway.
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TurboTax did ask how much stimulus did you get in the first round and second round. If you somehow are below the declared amount, it gets added to your refund.
I lack the courage to use TurboTax. Between stocks, crypto, and side hustles, my taxes are too complex for me to trust myself. I tend to defer to an accountant. It costs more; but, it also lets me sleep better.
Oh yeah, that's definitely the safest option.
Congrats on getting yours done. Hopefully there wasn't too much damage. I am heading to my brother in laws in a couple of weeks to have him bang out ours. Hopefully they aren't too messy with my crypto stuff this year.
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It wasn't too bad.
Hope yours will go well.
BOOOOOOOOOOOOOOOOOO TAXES! hahaha yes, got mine all sorted. Feels good!
Very nice!
do you guys have VAT in the states?
Don't think so.
That's why goods aren't the same price as shown on the labels and they vary from state to state.
Sometime in the late 80s I started a vanity business with a friend. She was the business part. I was the fun, serendipity part. We made casual apparel with pet designs. Silly, but I liked making the pictures. Anyway, she decided to stop. I bought the 'merchandise', because I liked it. It took just one year--one tax cycle--for me to close down shop completely. The only reason was the complexity of the tax forms. We had opened an S corporation. The leftover 'inventory' made nice presents, though. I still own one or two of the items, mostly for nostalgia.
The tax system can be an enterprise killer, not because the rates are high, but because the filing is so onerous.
Turbo tax for me now. And I let my daughter file. No more headaches.
That's a feel bad story right there.
Kinda unfortunate that the complexity was what annoyed you enough to quit.