So how did we do?
I'm thrilled to say we took in more money then last year. With my new job and hubs now full time job, we were able to make just over $58,000.00 last year!
We made $16,500 more dollars than last year!
WOOT! WOOT
With the help of Turbo Tax, we were able to take that amount and transform it down to an adjustable gross income of slightly over $35,500 for an effective tax rate of 6.97%. Last year our effective tax rate was 5.38%.
We should be getting just over $700 back from the feds.
For the state, our taxable income came in just under $45,000.00 and our effective tax rate on the state level was 1.22%. Last year our taxable income was a little less than $30,000 and our tax rate was 0.61%
We are getting just under $300 back from the folks in California.
Yes, I paid for Turbo tax and it cost us around $90 to file our taxes this year for both the state and the federal. We paid for the home business version that's a bit more pricey so we could take the nearly $2k in profit from our woodturning business and make it only $9 of taxable income with all the business expenses and receipts I saved. (We won't be able to do that for 2014... but we had a lot of equipment purchases and materials in 2013).
Every year I say this because I know there are free file options and you all are going to comment on why I didn't use them, but I always end up owing money or not getting as much back when I try to use those other options because i'm stupid. I can't read and follow the tax directions because the wording is so funky... So yes, I spend around $90 to do our taxes and that normally gets cancelled out by the extra money the software gets me in credits and deductions.
This year we got a $400 credit for our plans to max out both Roth IRA's by the deadline... and with our tax return, I think we can make it if we stick to our plan and our budget!!! We may not even have to touch SCB's profit sharing money!!!
I always pay for turbo tax. It makes like so much easier. Congrats on the extra income. Sounds like 2014 will be even better! Are you selling your woodworking items online?
ReplyDeleteThanks. Last year I got a lot of "haters" about paying for Turbo tax, lol.
DeleteAs for woodturning, we have at ETSY store. Right now I don't think there's inventory listed, but we do custom orders when someone contacts us. With SCB's job and my new work schedule, we don't have any community events lined up so the woodturning has slowed down so its mostly word of mouth for the moment. If your interested in a custom order, just shoot us a message on etsy by clicking contact shop owner.
http://www.etsy.com/shop/BassettHandcrafts
LOL. yeah, if you have a home business, Turbo Tax is definitely worth the extra $$$
ReplyDeleteYa. It always reminds me about something I forget to put in, so its worth the money. :)
DeleteI am a tax professional in an area that is not in personal income tax and I still use TurboTax. I am very adept at reading tax law and the legalese and have filed for free before, but it's not easy to keep up with the changes in the personal income tax code. I think preparation of taxes is a perfect thing to outsource to a professional or to use tax software to walk through.
ReplyDeleteThanks Walnut! Always nice to hear that coming from a tax professional :) I'm glad I don't have your job. Its hard enough keeping all our stuff straight instead of a lot of clients stuff too!
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