Sunday, January 22, 2006

It's the Most Wonderful Time of the Year

I am surely speaking of tax time. I love tax time. It's a time to take stock of the finances, and settle up with the government. Typically, due to our investments and us being pretty savy, we have a large refund. Last yeat it was over 10K. Really. I know, I would be better to not have the refund, have the money back in the pay checks to invest it earning interest somewhere. However, our money came from us renting out our apartment and renovating it at the same time On the books, this equaled losing money. It really was, we totally renovated an apartment top to bottom. We also sold said renovated apartment and now are facing a capital gain this year. Two of them actually, we sold both properties. So I am not sure what tax time holds in store. We do get the adoption tax credit, and we get to add two children to the mix. I have 5K in college tuition from St. Rose, and there were renovations to the apartment before we sold it. PLUS, moving expenses ( totally legal to write off in a job related move) and because we itemize and had shitty insurance ( now we have mine, it is awesome baby), we have almost 5K in medical expenses. So, we either will come out even, or we may possible owe. Either way, I did the tax prep today and once the forms come in from year end earnings, I can send it onto our accountant to do the math. Even though I don't expect that big tax refund we have gotten used to, I am excited to get this last tax year behind us, settle up with the government and move fiscally forward.
2006 will bring a tax deduction for insulating the kitchen floor ( energy tax breaks for 2006-2007), tuition ( my last class for perm. certification), and child care deductions, in addition to the usual interest on the home loan and school loan. It's a start. Gone will be the rental write off and the medical write offs. My plan is really good now and there will hardly be any uncovered medical expenses. Nice to have that money back in our pockets!
Here's to a financially healthy 2006, may your mutual funds grow and your 401K's pop, and may we get closer to getting Bush out of office so better financial days loom on the horizon.

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