Shopsmith Forums

is upon us once again.

This time I am well ahead of the curve. I have completed my first draft. All I am waiting for now are the 1099's etc required to accompany my return. If my numbers are correct, I am done. I am pleased to report that there were no surprises brought about by the tax changes.

I did a trial run for our Federal return last night with the software from work. My retirement job has me doing tax work for part of the year--for just enough time to make me appreciate not working full time anymore. Kudos Dusty for getting ahead of the curve.

RCZ wrote: ↑Tue Dec 14, 2021 11:39 am I did a trial run for our Federal return last night with the software from work. My retirement job has me doing tax work for part of the year--for just enough time to make me appreciate not working full time anymore. Kudos Dusty for getting ahead of the curve.

This is the sorta thing that happens when, for whatever reason, you spend less time making saw dust.

I'm not even looking at it until around Feb 1 when the IRS releases the new forms. Changes won't show up until then, and it isn't worth doing it twice.

Last year a client of mine dropped an $80k payment into my business account on December 31st for invoices due in January and February. Since I run my S-Corp on a cash basis, I had to pay personal income taxes on that for 2020 as well as pay out the vast majority of it as payroll over the next couple of months. A pile of cash at the wrong time can actually be a bad thing; It sets me up in a great position tax wise this year though.

Tax planning is a continuous process, but I'll start working on the actual filing in February. For the record, I'm not a fan of tax season.

twistsol wrote: ↑Tue Dec 14, 2021 2:45 pm Last year a client of mine dropped an $80k payment into my business account on December 31st for invoices due in January and February. Since I run my S-Corp on a cash basis, I had to pay personal income taxes on that for 2020 as well as pay out the vast majority of it as payroll over the next couple of months. A pile of cash at the wrong time can actually be a bad thing; It sets me up in a great position tax wise this year though.

Tax planning is a continuous process, but I'll start working on the actual filing in February. For the record, I'm not a fan of tax season.

I have not been a fan of tax season and still am not. However, now that I am fully retired I have had the time and the motivation to "get things in order". With a little help from my daughters, I now have the whole process documented (mostly in interactive spreadsheets) and all I have to do is faithfully complete a monthly reconciliation. Takes about an hour.

Doing something different this year that I hope works out well.

My 401K was composed of before and after tax contributions. I have been taking out larger then minimum amounts and so far all it has been taxed monies. Very close or past that now. So for the first time I'm letting them figure out my minimum withdrawal. Actually last year nothing was taken out due to the pandemic.

So for the first time I have no idea how much will get deposited in my bank and what if any of it is taxable plus I'm not sure if they just take out at a fix tax rate or just how this works. The process started on the 13th but no money has shown up in my account, I think they said it was going to be about the 15th so have to wait and see.

In general this year was the first time that I did not make my goal of 10% of my income from investments, actually far from it. With just the rest of this months numbers coming it is only about 3%. Since I have no money withheld on this income I expect a decent refund. Of course better to have the money that is missing then the refund but hey it is something.

Ed

I don't do my own taxes. We have a CPA do them and he has been doing them for the past 37 years. We just get a tax planner from him that has all of last years amounts and fill it in for this year and let him do the figuring.There is a big change here with the state income tax. After years of debate Utah has finally exempted military retired pay from income tax. In the past I never had state tax withheld from my military retired pay because Utah did not require it. As a result we always owed the state. That will change this year and going forward.

garys wrote: ↑Tue Dec 14, 2021 12:37 pm I'm not even looking at it until around Feb 1 when the IRS releases the new forms. Changes won't show up until then, and it isn't worth doing it twice.

That's probably a good idea. I think I'm doing the same.

$7500 Tax credit right there ! Solar powered Shopsmith
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