For about 20 years I’ve been using TURBOTAX to do my taxes. Now that Diane and I are retired, our taxes are pretty straight-forward. We have our pensions and our Social Security and that’s just about it. We have Roth IRAs, but they are tax-free.
This year, it took me a little longer to use TURBOTAX because it insisted I upgrade my Apple Operating System to BIG SUR. That took about an hour. Then, TURBOTAX was finally ready to do its thing. I inputted my data and TURBOTAX informed me I was getting a $2100 Federal Tax refund. I also broke even on the New York State taxes so I owe them nothing.
Have you done your taxes? Have you received your Economic Stimulus check yet?
Got my stimulus check on the 17th. Got my tax refunds a couple of weeks ago. I used to use Turbo Tax which ended up costing me about $79. This year I used FreetaxUSA which cost me $12.95 for my state taxes and nothing for my Federal. Took me about 45 minutes to do my taxes. Mine are pretty simple. All I have is my SSI and an annuity.
Steve, congratulations on the tax refunds and the Stimulus Check!
This year I decided I didn’t want to bother with Turbotax and having to run through their endless questions so I went to H & R Block and let them do it. It was quick and easy. E-Filed on the 13th and got my state refund yesterday. I just have my pension and SSI. For the past few years I’ve had to take a Required Minimum Distribution from my deferred comp plan, but for 2020 that requirement was lifted. Unfortunately it’ll be back for this year. My pension is non-taxable for state purposes so I always get back anything that was deducted for that. I usually have to pay the Feds but this year I got a refund, probably because of not having to take the RMD.
Michael, well done! It’s always fun to get tax refunds, especially when you didn’t expect one! Like you, Diane’s pension and my pension aren’t taxed by NY State.
We tried Block last year and they were so expensive!
For the second year in a row (thank you,Covid) we did ours by mail. I scanned the documents (like others here we have Jackie’s pension plus SSI, plus we do have an investment account, and small IRAs and annuities, including one I inherited from my father) and emailed it to our accountant. I did take the RMD from the Arizona account and the IRAs (a few hundred each), but didn’t take it from the TDA from the pension (it was $6,000 in 2019). Overall, we’re getting a Federal refund of about $1250 ($100 more than last year) plus $125 from NYS. We should get them in the next couple of weeks (unless they are delayed due to the stimulus).
We got our stimulus check in our checking account on Wednesday.
When I did the taxes, I thought, “Isn’t it time for the annual George Kelley Tax Return post?
Jeff, usually I did our taxes over Presidents’ Day weekend when I was working. This year, the IRS wasn’t accepting returns for processing until February 12, 2021 so I figured I’d wait a few weeks for the IRS to “catch-up” on processing tax returns before I submitted mine. For the past four years, I’ve filed my taxes online (as TURBOTAX encourages its users to do). No standing in line at the Post Office for me! Congratulations on those tax refunds! Time for Jackie to stimulate the Economy!
We still have someone do our taxes (although they aren’t complicated, especially since we can no longer claim any of our children as dependents—but I still prefer someone else to prepare them). John and I are both still working and haven’t touched any of our 401k/IRA money yet. I like to break even tax-wise, don’t like to owe too much or get too much back. I’ll know in a few days what the verdict is.
Yes, we got our stimulus money on March 17. It was a lot more than we were expecting because we got $1,400 for each of the twins because they were still our dependents on our 2019 taxes. We gave them each $1,400 and banked the rest. We’re looking at getting a new car sometime this year and that money will eventually be part of the down payment.
Deb, I’m glad the twins still counted in the Stimulus equation for your family! I’m sure the twins were happy to see that money! The Republicans keep up their Party Line attack on the Stimulus Bill saying it’s “inflationary.” They must have flunked ECON 101. So many Americans need that Stimulus money because they are unemployed, underemployed, or dealing with debts caused by the Pandemic. Most Americans will put that money to good use. Of course, some Americans will take their Stimulus money to the Casino.
My brother has done mine for the last two years. He says it takes him a half hour. I paid a little to the Feds and got a little back from the State. I only have 25% in the stock market now. The rest is in CDs or bonds where I don’t earn much but I don’t lose much either.
Patti, breaking even on our Taxes is always my goal. Small refunds (or payments) are okay, too. I just don’t want any “surprises.” For people in our age group, the strategy should be to avoid risks and go with assets that are safe and secure. I want to preserve my wealth despite the upcoming economic trials and tribulations.
I got my stimulus check on the 17th.
I have a CPA do my taxes and have done so for over 20 years. I’ve been audited twice, and a couple of years ago when I moved an IRA from one bank to another, and I might add, claimed the amount I took out and noted the rollover to the new bank, got a bill from the IRS for about $20k. It’s nice to have a cpa deal with them. Also, dealing with the investment account and stock yield would make me tear out my hair. It’s worth the $$ to me.
I never want to pay, so have a lot withheld from both my pension and starting last year, my Soc Sec. I have most of my refund applied to next years taxes, as I’m going to be required to start taking out from the Deferred Comp. I’ve been gradually taking out $$ from my IRAs, and should have done that in the 3 years before I started getting Medicare, when my pension was reduced by 1/2 due to medical insur costs (when I first retired, my $400/mo allowance covered medical, dental & some left over), but by the time I got medicare, that much was deducted from my pension for just Kaiser.
I’m confused George. Do you not have $$ in the stock market any longer??
Maggie, all the stocks I own are in my Roth IRA so their dividends and appreciated value are all tax-free.
We filed weeks ago. As usual, in spite of withholding and paying estimated taxes quarterly to State and Feds, we owed both, over a grand to Feds and several hundred to State. You’re lucky your state doesn’t tax your pension, Oregon taxes everything. No stimulus check yet.
Rick, Diane’s former boss, the Principal of the Elementary School she taught at, retired and moved to Savannah, Georgia. He was known as a meticulous guy who prided himself on Doing His Homework before making any decision. After a year of living in Savannah, it was time to do his taxes. He found out that while his pension was NOT taxed when he was a resident of New York State, Georgia did tax pensions. It was a bitter pill for him to swallow.
That’s strange. Georgia doesn’t tax my pension or that of any retired person I know. For whatever reason the tax is deducted from my monthly deposit but at tax time it’s all refunded. This has been true at least since I retired in 2003.
Michael, Diane’s Principal found out that Georgia taxes out-of-state pensions. After living in Savannah for five or six years, he moved to Florida which has an agreement with New York State not to tax NY State pensions.
Same here, if we were still in CA, we’d pay on the pension but could at least withhold. Not here in OR.
my pension is also taxed
AS,George said, NYS doesn’t tax Jackie’s pension, nor would Florida if we moved there.
I have NOT received last year’s tax refund, or last year’s stimulus check, or this year’s stimulus check! I have an appointment with the IRS on the 12th of April to discuss this! First I have to have my comments to this blog moderated (when no one else does), and now this crap with the taxman! Oh, and my debit card for one of my credit unions doesn’t work! Since I don’t want to send my social security number over the phone to rekindle it, I’m going to let it be! I only use it to receive my VA disability money and I’m amazed at how much I’ve managed to save so far!
Bob, Patrick will work on the Moderation problem soon. Good luck with the IRS!
That must be why so many New Yorkers move to Florida.
Rick, exactly! New York State also cut a deal with Pennsylvania so NY State pensions aren’t taxed there, either. But, most retirees prefer Florida. But, many states tax out-of-state pensions.