File Your Taxes

Are you ready to file your 2018 taxes?  By now you should have received the necessary information.  Don't wait until the last minute and rub up against the April 15 deadline.  Yes, you could file an extension, but you're just delaying the inevitable. 

I was a little nervous this year as I knew the new tax codes would have an impact.  I do like the standard $24,000 deduction.  No need to keep little receipts for donations to the Goodwill or whatever.  However, I think that will hurt non-profits as there is no big incentive anymore to buy auction items at the local high school fundraiser.

As far as the whole health insurance thing with receiving forms "proving" you were covered?  Stupid.  The IRS does nothing with them.  What a waste of resources for issuing them.

The other big change was the mortgage interest deduction.  If you have a home equity line of credit (HELOC) or took out a second mortgage, you will be quizzed as to what you used the money for since the inception of the loan.  Good luck remembering just WTF you used it for.  The IRS is chopping up what is deductible.  If you used the money for home improvements, it's deductible.  If you used it to pay off credit cards, it's not deductible.  FWIW, never use secured debt (like your house) to pay for unsecured debt (like credit cards).  

Bottom line:  The IRS gives, and the IRS takes.  The most impact was receiving a 20% credit for money earned as a 1099 independent contractor. 

Whew.  I had a pile of money set aside for taxes as I was not sure how all the changes would pan out for us personally.  I did not have to draw on that to pay either federal or state taxes.  I consider that a good tax year.  However, we paid our more than our fair share as we pay estimated federal and state taxes and NEVER get a refund check.  The government depends on people like me who pay taxes and don't take refund checks.

You're welcome. 

Somehow, I don't think you care that I don't ever receive a tax refund check.  You want money in the federal coffers to pay for all the government programs and perks, but also want your huge tax refund check.  You can't have it both ways.