Death and Taxes
Posted by moonimus on Feb 1, 2008
It’s about that time again folks. Taxes, taxes, taxes. So what does this CPA do for taxes? I use Taxcut. I was really angry last year when we got a sizable refund from New York but ended owing the IRS nearly double the refund. I was stressed because we had bought our apartment three months earlier and we were strapped for cash. Of course, the IRS doesn’t care if things are tight and they certainly won’t wait for your state refund check to arrive so that you can pay your Federal taxes. They are like Robert DeNiro in Goodfellas. They want their money.
But this year I feel more at ease since we have a $1,000 emergency fund. Also, our daughter was born this year and we have a full year of mortgage interest to deduct. We did not nearly make as much money in 2007 as we did in 2006 since Mrs. Moonimus has stayed home for about 4 months. My expectation is to be within $500 on either side of our State and Federal taxes. And if we come out more than that on either side, I will have to adjust my withholdings appropriately.
Lately, I have also been thinking about our wills and general estate planning. While I plan to stay alive as long as possible, anything can happen at anytime. I’d hate to be financially unprepared for that moment especially if we were to leave our daughter behind. I have a friend who is a lawyer that specializes in estate planning so this will definitely be another “to do” in 2008. I have been waiting to finalize life insurance on Mrs. Moonimus which should be done by the end of next week. Life never stops…
