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Tax Update

February 13th, 2010 at 04:17 pm

Is it absurd that I feel like I am filing insanely late? I usually have my taxes done before January 31, and file sometime around Feb. 1. Big Grin

But, life has gotten in the way, and this is my first opportunity to sit down and finalize everything.

I will hold off pushing "send" since I think that I have more charity receipts laying around.

I also need to open a regular IRA to roll my work retirement into. My boss is closing the plan. I just have no idea what I want to invest in. Ugh. But if I open a regular IRA with $1080, this got my taxes down to $0. ($800 refund Feds; $800 due to state). & makes our retirement contributions about 17% for the year. Woohoo. I am contributing for 2009 to get the immediate tax break. That, and I don't need a tax break for 2010 - I have medical bills galore for that...

So, I will just file my taxes with that figure, and pretty much means I should just open a Vanguard fund - since I can invest as little as $1k. I can always change my mind and roll things around, later. I think it's time for me to open a Vanguard account!

I will probably invest this money a tad more conservatively, which I suppose makes sense, since it gets taxed on the back end. LEt all the aggressive stuff be in the ROTHs? Since it shouldn't be taxed again? Will have to ponder it. This will put our ROTHs and regular IRAs at about 50/50. It's been that way for a while, but I haven't had any control over my work retirement before. So, now I have to think about it all a lot harder. It's overwhelming to suddenly be in charge of such a large chunk of change!


I've got to whip out the kids' returns now. I think part of the reason I like the UGMA accounts for them, is they are well under any taxable limit for now, and I can easily report their (non-taxable) dividends on my tax return.

BUT, their balances grew enough in 2009 that I was able to move them over to some mutual funds with bigger minimums. So, sold their old funds, and triggered capital gains or losses. Not sure which - I haven't looked. Probably losses, after the storm of 2008. So, now I have to file 2 more tax returns. Ugh!

Note to self: Don't trade their mutual funds willy nilly!

I actually just put them in some "Retirement fund" that gets more conservative with time. Putting the target date when they turn 18, or something along those lines. So, I don't foresee a lot of trading anyway.

I think I didn't want to be reponsible for messing up their investments. I just set it to "easy." It's one thing to mess up my own retirement, but their mutual funds are about 99% funded by gifts. I am just playing those safe!

Anyway, all our investments are tax-deferred, or in cash. Their taxes are more complicated. Lucky them!


In other news, we got the house back to ourselves! Big Grin It was kind of nice yesterday.

I figured I would work all morning and go check on them at lunch. Considering the last few days, I am sure they will be fine. Though the kids would probably love a trip to the drop-in daycare place, all the same. May do that for dh. I think the gameplan is to try not to expect much of anything from him for 2 more weeks. Next week will be easy with the kids gone. I told him the week after I would drop off BM at before-school daycare to give him a break in the mornings. But, at the 6 week mark, I won't be so nice. I think it is crossing the line to our usual "he is not a morning person" thing. Whereas, I can't work near the overtime if I am getting kids ready and busing them to school, etc. So, I told him I would do everything until his doctor appointment March 1, and then he is going to have to start getting BM to school. He always gripes about it anyway, so I think at this point he is just milking it. But if he is supposed to take it easy for 6 weeks. I won't be so nice once March rolls around and work gets extra crazy!

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