2008 Taxes, Turbo Tax and Quicken!

I got all our paperwork together and did our taxes. I used Turbo Tax and I am so glad that I did. Obviously, the main motivator for me doing our taxes now was to see whether or not we would get a refund (yay) or have to pay taxes (yuck.) As I mentioned in my earlier posts, we've been very disorganized with our money and so I am trying to face my finances and get everything straightened out. The good thing is that we had all our documents in a file folder. Here are some of the reasons why I'm glad I used Turbo Tax and did the taxes online, rather than trying to figure everything out for myself.

1. Our income situation changed- I had a W-2 from my wages and severance pay, my spouse had a new employer, my husband received jury duty pay, and I had to claim my unemployment benefits. Trying to figure all of this out on my own would have been nightmarish to try and figure out which schedules I needed and what documentation I needed to provide. TurboTax walked me through this step-by-step.
2. We decided to itemize- we did some charitable giving this year and TurboTax has a very cool feature which allows you to get an estimated value of things that you donate. I donated a lot of clothes and books this year, and was able to write that off with documentation to support that. This feature is called Itsdeductable. (More about this later.)
3. I have small children. What does that have to do with anything? Well instead of going to a preparers' office and having my children climb around like monkeys or have to pay for childcare, I was able to prepare my taxes in the middle of the night while they were sleeping.
4. I messed up. Even with all the support they offer, I was tired and not paying attention. I overlooked one of the many forms I needed to submit for income, and had to file and amended return. Turbo Tax didn't charge me again to file, pulled the necessary 1040X IRS form and filled it out, plus recalculated our tax refund.
5. I am broke. Turbotax has a feature (for an added fee) where they will take the cost of filing out from your refund. How convenient is that?
6. They offer a year of Quicken free for people that file (with the version I purchased.)
7. I was able to e-file and should be getting my refund in a few weeks. My refund was less than last year because we made more, but we were smarter about tracking our donations and allowed deductions and our refund is going to be equal to two months of mortgage payments.

So some of you savvy folks might be saying to yourself about number 7, "If you are getting a big refund back, you are just loaning the government money." That's true, but I believe some of the stimulus package or recent tax legislation loosened things up for people like me. My husband had very little withholding this year, and I was actually worried that we would end up owing money. Our state allows you to withhold state and federal earnings from unemployment, which I did. I am thrilled that we are getting some back.

Here are some things that I learned from this:

• Keep a file folder for the current tax year. For example, it's 2009, so you should have a folder with tax information for this year. That way, when next year comes around and you get those W-2s, and 1099s and whatever other funky forms you have to fill out, you will have a place to put them. When you sit down to file it will all be where you need it.
• I am not a tax professional. Now that I am a homeowner, married, and have children, my tax situation is more complex. I need to rely on the help of either a tax professional or software to help me do my taxes.
• Do your taxes early! I saw some post on yahoo that says you are more at risk for an audit if you do your taxes early. I don't know how true that is, but I didn't bother reading the article because I can sleep better at night knowing my taxes are completed and that my refund check is on its way. Additionally, when I have filed late or very close to the deadline, I have had to wait longer to receive a refund.
• Getting rid of your clutter can help you free up space and money. Our refund increased because of our donations this year. A friend of mine gave me a great tip early in 2008. She said, "Whenever I go to donate items to the Salvation Army I have a notebook and any thing I throw into the box I write down in the notebook. Then when I get my receipt for donating, I attach that to my list. I use Itsdeductible on TurboTax after I've made the donation so I know how much I can claim."

The clock beat me.

I caved- I got some money from my parents to keep us "afloat" with this car insurance premium coming up. We don't want a handout though, so my husband will be working off what we received today in the next few weeks. I could have asked for more, but I got just enough to help us along.

I went to go sell some books at a used bookstore which on their website claims they will pay you cash, but instead they gave me store credit. I didn't want to make a big deal about it, and I was happy to get something for VHS tapes and books we won't use anymore. So I basically traded a bunch of crap that we don't use for 2 books that I wanted to read and a book that my kids picked out. I still have some store credit, so the next time I am jonesing for a book purchase and I don't want to check something out of the library, I can use it there.

They gave us some items that they wouldn't take and so I put the ones I could for sale on Amazon

I plan to do our taxes over the next couple days, I am hoping since I was laid off this year, and our income was spotty, we will get a refund back. I hear all this chatter about the stimulus package- but it all seems rather murky to me. Some things say that if you received the stimulus check last year, you don't qualify for this year, and then other things say that there are additional tax credits for families. I am hoping that is the case.

I also plan to sell some of the kids old clothes this week sometime, I probably won't get much for it, I think I made $15 the last time I did that, but that is $15 more than I have right now.

With a little help from my friends and the internet

A friend of mine recommended an awesome blog about getting yourself together financially. There is a great suggestion on this site to put your income and expenditures on a calendar. This is a great idea since I am a visual person. I am hoping that it will give me some ideas of when money comes in and goes out. Here's a link to that in more detail http://financegrrl.com/blog/2007/04/01/get-ahead-introduction-to-cash-flow/

I'm feeling defeated

My husband was able to bring in some extra money doing some handman jobs for my folks, but we are still in the hole. I have an automatic debit going to hit on Monday for our car insurance which exceeds what he was able to make and what is in the bank.

Part of this is because I went to the grocery store to buy a few things, and didn't check the balance before I went, and I over spent when I was there. I think I am going to have to ask to borrow some money to tide us over. This is very discouraging. To get some extra income, I had planned on selling somethings online, or selling some of the kids old clothes to Once Upon A Child, but both of those endeavors take time and I am racing against the clock here.

I really don't want to have to borrow money from family, but I think right now we might have to.

If anyone has any tips on selling things on Craigs List, I'm all ears. I've gone the ebay route before, but I think I need money sooner than later right now.

About that extra income

I thought that maybe hubby and I could earn some extra income by helping out my parents. We've been helping them out, but not in a employee-employer situation this week. My dad has been really ill and has been in the hospital and we have been running back and forth visiting, and I have been making lots of phone calls to try and secure him a place in a decent rehabilitation facility. Obviously, family comes first, so I am glad that our energy has paid off, but I am worried about how we are going to catch up.

I think my hubby will do some handyman type work for them this week, and that should help us pay off some of our essentials. Also, we heard from his job that he will probably be back on the project next week, so we'll be seeing some paychecks coming in soon. In the meantime, I am going to try to pull money out of my ears.

With the way the economy is, there have been all sorts of news stories and articles on how to save money and cut out non-essential expenditures. But, I feel like we are already doing a lot of that- ie. no cable, not spending a lot of money eating out, etc. I'm going to "sleep on it."

Cool Budgeting Tool

I found this on Bankrate.com today. I intend to play around with it after Jake gets home tonight.
Budgeting 101: A tool to start your budgeting process

It worked! (For now)

Today after I got home from the Y and doing some grocery shopping with the kids, I called ComEd, and they told me that at this time I am not in jeopardy of being shut off. That's a relief! I still need to pay them $200+ for current charges and some past due, ASAP. Once my husband gets back from his trip and we deposit his check I will send them some more.

I still owe the gas company a lot, so I will be pushing them up on the priorities list as well.

I am thinking to make this work, I am going to have to try and generate some extra income. I've considered part time work, but right now I'd have to get a babysitter to cover some of the hours between when my husband comes home and in the end I don't know if it would be worth the aggravation.

As far as that goes, I've signed up for some mystery shopping assignments. The money isn't anything great right now, but they do reimburse you for things, so that has been nice. I am hoping to get some restaurant type shops so we can have a meal out for free.

Also, I am going to see if my father will pay me to help him with his office. His health is failing and he has a one-man brokerage office, but will need some help getting the books together and getting the place cleaned up. I was working for him a few weeks ago, but he took a turn for the worse health wise, and it didn't seem right to push the issue right now. My parents have also offered to pay my husband to do some handyman type work for them either on the weekends or when he is in between projects at work. This has worked out in the past for both my parents and me. I know most people don't have this option, but I guess when you are in a tight spot, it is good time to be creative and look at all of your options.