Susan Dennis (susandennis) wrote,
Susan Dennis

Doing the Federal Income Happy Dance here!

Last year I had to pay nearly $3,000 in estimated Federal income taxes every quarter. It was a bitch. My CPA told me I was one of the 5% of his clients who's tax situation was worse because of Trump's tax changes. Lucky me.

Most of the heavy tax bill was because when you hit 70.5 you are required to withdraw from some retirement savings accounts. BUT, what I did not know was that my wonderful investment guy set up Federal withholding from that withdrawal. So, turns out, I paid $5,000 more in Federal taxes than I needed to. PLUS, because of some losses and that withholding my quarterly taxes this year are just over $1,000!!

My accountant asked me how much of the $5,000 I wanted applied to this year's taxes. I said all of it.

So... to recap... all of my Federal taxes for 2020 will be paid up PLUS I get a refund that will cover the CPA's bill and still give me about $500 cash.

Holy fucking tax jackpot!! I am so glad I resisted the urge to do my taxes myself.

I can hardly believe it. Wow.
  • Post a new comment


    default userpic

    Your reply will be screened

    Your IP address will be recorded 

    When you submit the form an invisible reCAPTCHA check will be performed.
    You must follow the Privacy Policy and Google Terms of use.