Yesterday was the perfect day to pull up VST’s big office chair and snuggle to the taxes. One day is as good as the next when retired. A blustery winter Friday seemed fitting, so I opened the Tomb of Taxes Past and got to work.
Visiting with girlfriends over lunch on Wednesday, I mentioned that I prepare my own taxes. They seemed a bit horrified. VST and I always completed our own. We faced an audit at the ranch one year in the 1900’s. The auditor was there for less than three hours and walked away shaking her head. She expected to find hidden money for the government. After examining a huge binder full of hundreds of supporting documents, all organized and at the ready, she found a mistake in our favor. We assured her we were happy to leave things as they were.
VST and I always shared the unpleasant task of preparing the tax forms. Four eyes were better than two. Two brains better than one. Through the years, I learned I’d rather be the Outlaw of Tax Town while VST followed every single tax rule to the max. Between the two of us, we’d settle nicely in the safety of the middle between jail and paying way to much.
2022, my second year widowed, the first TT entry was the saddest. This year I’m required to file S (Single). Just one word. No MFJ (Married Filing Jointly) as I did for 33 years. Just S. It’s the smallest things that make us stumble.
After that, Turbo Tax did the work. Asking questions and then providing appropriate worksheets, it was simple. I do have some tips to make things much better as you create your new banking world as a widow or widower.
After you nice feature is that it provides a printable Tax History of prior years that to keep with your final documents. Information can be uploaded from your banking institutions. It’s possible to E-File your taxes on this program, or you can send them snail mail. All in all, it works for me. I order my program in December on Amazon. They have lots of choices. Luckily, with no state taxes in Nevada, I only need the Federal version.
At the beginning of each year, decide on a dedicated place to collect the various tax papers that will arrive. Organization is key. You may need to print copies from online accounts. My bank emailed notice when they were ready. I made paper copies and those went with the rest. If you are just getting organized now, find papers related to income, such as W-2’s, and the various 1099’s. Then, find documents showing deductible expenses, such as property tax or medical bills.
Now is a great time to clean out your filing drawer, if you have one. Organizing my office drawer always starts with the best intentions, but by December, mine is just a crowded mess. Going through the drawer, I remove everything from the prior year, deciding what will be filed away with the taxes and what to discard. This is an important step before beginning anything. When organized, any task, even the most unpleasant, goes much better.
Turbo Tax offers two choices when beginning. You can go it on your own, or be guided through each step. Their guide is helpful. By answering easy questions, you are led through a maze to the end, as the amount of your tax liability shows at the top of the screen. Up and down it goes. Where it stops, only Turbo Tax knows.
Finally, it’s time for a final review and then, decisions about how you will receive your refund or pay up. In my case, let’s just say that it took a minute to find something for which to be grateful about the final amount shown.
Americans are blessed to live in such a wonderful country with beautiful states and towns. With a positive attitude, I will send my taxes into the world, focusing on the good the $$$ will do to make a better world. That’s the best way. Send them with blessings to Do No Harm. When I hear of a project I support, I”ll choose to believe with all my heart that a few cents of my money went to help with that. For those things I find abhorrent, I choose to believe my funds didn’t reach that far. It’s better to keep a cheerful attitude about something of which we’ve no control.
I’m not sending my taxes until April, but they are complete. I hope VST is up in heaven smiling at the job I did. I hope the IRS angels will approve. Turbo Tax says that I have almost no chance of triggering an audit with the information given. 2021 Taxes are put to bed. I hope 2022 Taxes are gentler to the pocketbook.
As a new widow, I wasn’t afraid to seek help the first year. I prepared my taxes as usual and then went to a CPA referred by a close friend. For $100, it was worth the peace of mind. There is always someone that can help when you are just not sure what to do.
Taxes and death. There is no escaping either one. With a new storm blowing in, I plan to spend the day doing something pleasant. Soup in the Crock Pot. Saturday Chores. The Singing Nun as my Movie of the Day. Whatever you do, enjoy.
More tomorrow…….