Tax Season

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HopefulSSer
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Re: Tax Season

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bainin wrote: Tue Dec 14, 2021 10:26 pm $7500 Tax credit right there ! Solar powered Shopsmith :)
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Hobbyman2
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Re: Tax Season

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LIKE! we have been thinking seriously about solar panels , I have a large lot that I could sink a few in and produce enough to cover the rental next door and sell back to the grid but not sure how many panels I would need to do so . last I heard it would cost us around 16- 20 k for the initial investment depending on how elaborate we wanted to go .
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reible
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Re: Tax Season

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I was busy today finishing my 2021 information and then starting my 2022. This is a follow up to the post below.

It turned out I have used up my taxed saving (401K) and started on the money that gets taxed. This past year the taxed amount is about $660 and they did not take any taxes out on that. Don't think that will effect me much. I will be more proactive this year and make sure they take out money for taxes.

As I had mentioned I normally try to see about a 10% of my yearly income to come from investments and interest. The numbers were running at just over 3% with the actual turning out to be 3.89%. That is a bit better then I expected but far from the 10% goal.

Cash flow remains positive but less then some of the past years. If I take out the incentives the government gave us it is a bit of a grimmer picture but at least I don't plan to live forever so we should be good until we don't have to worry about it anymore.

The SS amounts for us will net us about $177 a month clear. Waiting to see what the supplemental health coverage gets of that..... Two other expenses I already know about will eat up about $30 of it and that is way before inflation takes it toll.

Good thing it is only money.

Ed
reible wrote: Tue Dec 14, 2021 4:40 pm 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
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dusty
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Re: Tax Season

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Hobbyman2 wrote: Tue Dec 14, 2021 10:34 pm LIKE! we have been thinking seriously about solar panels , I have a large lot that I could sink a few in and produce enough to cover the rental next door and sell back to the grid but not sure how many panels I would need to do so . last I heard it would cost us around 16- 20 k for the initial investment depending on how elaborate we wanted to go .
If thinking about going solar --- read the contract very carefully; especially the details associated with selling back. My grandkids got some real surprises after their solar field was installed.
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garys
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Re: Tax Season

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We don't have a start date yet from the IRS as to when they will begin to accept returns. Last year they didn't announce that date until around Jan 15, and the start date was around Feb 12.
I won't have my 1099s in hand yet for about another month, so I wouldn't be able to do any final numbers until that time. I expect things to be about the same as last year for me.
And, if you were one of the folks who received your refund late from the IRS last year and they paid you interest on the late check, don't forget to include that interest as income on this year's return. I have about $2 to claim there.

If I had solar panels, they would be buried under the foot of snow that covers my roofs for the past couple of weeks. I'm betting they don't produce much electricity that way.
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twistsol
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Re: Tax Season

Post by twistsol »

An exciting evening of taxes last night. Finished W2's for all my employees and let them know they are online and will be mailed out today., filed all employer forms for 2021 except Federal Unemployment because the form in Quickbooks isn't ready yet, and filed and paid sales and use taxes.

It drives me crazy that many employers wait until the last second to send out W2's. I get them out every year immediately after I confirm the tax deposits for the 12/30 payroll. The IRS is johnny on the spot taking tax payments out of my account, the state of Minnesota is always a few days after the requested date.
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dusty
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Re: Tax Season

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I am ready to file my 2021 taxes but will probably not do so. I filed 2020 early last year but the IRS still (one year later) does not acknowledge receipt even though they canceled my check for the 2020 taxes.
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Ed in Tampa
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Re: Tax Season

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dusty wrote: Wed Jan 05, 2022 9:18 am I am ready to file my 2021 taxes but will probably not do so. I filed 2020 early last year but the IRS still (one year later) does not acknowledge receipt even though they canceled my check for the 2020 taxes.
Dusty why file early if you owed money? Keep your money to near the end and earn interest on it. If IRS owes me money I file early, but if I owe them money I file as late as I can.
In either case I do, do my taxes as soon as I get all needed forms. That way I know who owes who.
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Re: Tax Season

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Filing early is always a great idea. Once your return is on file at the IRS, your account is locked down for the year so the scammers can't file in your account. The IRS loses billions of dollars each year accepting fraudulent electronic filed returns. Don't let your account be part of that. File early.
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dusty
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Re: Tax Season

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Ed in Tampa wrote: Wed Jan 05, 2022 10:16 am
dusty wrote: Wed Jan 05, 2022 9:18 am I am ready to file my 2021 taxes but will probably not do so. I filed 2020 early last year but the IRS still (one year later) does not acknowledge receipt even though they canceled my check for the 2020 taxes.
Dusty why file early if you owed money? Keep your money to near the end and earn interest on it. If IRS owes me money I file early, but if I owe them money I file as late as I can.
In either case I do, do my taxes as soon as I get all needed forms. That way I know who owes who.
I just like to have last years taxes behind me and the IRS is not letting that happen. I have filed a repeat tax file for 2020. Did that in October and still no feed back. Must be COVID ;) ;)
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