Monday, March 03, 2008

Money and Taxes

I prepared our taxes over the weekend.  I had planned on purchasing TurboTax (that's what I've used the last few years), but our income was low enough that we could free-file with both the federal government and the state of Utah.  I ended up using an online version of H&R Block's Tax Cut that went very well. 

Our income in 2006 was $15,000 more than we made in 2007.  Sometimes we look back and wonder how we made it...  Last year our adjusted gross income was just a couple of hundred dollars higher than it could be to claim the earned income credit (which is usually $1600-$1800).  If I had not gone to work the last couple days of the year, then we would have made $1400 more than we did...

This wasn't a problem this year.  We easily qualified for the earned income credit as well as other education credits and the basic deduction.  The good news (ok, great news) is that between the state and federal tax refunds we will be getting more than $4,000 back!  This will make a nice dent in a down payment (or school loans...).  And maybe I will finally buy my Wii :). 

Next year will definitely be different.

4 comments:

Angie said...

There really aren't any secrets with you! Let us know the results of your colonoscopy, okay?

tysqui said...

My next one isn't scheduled for another 3 weeks (I usually have 3-4 per year because I enjoy them so much). I'll still make sure the video is on youtube as soon as I get it.

Alysia said...

Wow, that is great return, we have never made that much back and I thought went through a poor period! Everyone says that you will look back on these years with fondness but we shall see about that right?!

Angie said...

Phew! I was worried I'd miss out!