The Tax Man Cometh…Sorta
Finally, all of my tax forms! Let’s see, we do we have here:
- 2 W-2 (Wages and Tax Statement)
- 3 W-2 (Recruitment and Relocation Allowance)
- 3 Form 1099-MISC (Business Miscellaneous Income)
- 4 Form 1099-INT (Interest Income)
- 2 Form 1098 (Mortgage Tax and Interest Statement - praise da lawd!)
- 1 Form 1099-G (State Income Tax Refund Statement)
- 1 Form 1098-E (Student Loan Interest Statement)
- Annual summary of IRA and MD529 contributions
- Meticulous personal records of rental income and expenses
- Meticulous personal records of tithes and charitable donations
- Sloppy personal records of online income not reported on a 1099-MISC
- 2006 fed/state tax records and 2006 mortgage settlement paperwork
- USB drive with fed/state tax records dating back to 2003
Two days ago, it could pass for a lifetime supply of JUNK! LOL
As my Dimples’ Style Chili was chilaxin in the crockpot, I sorted through all of my paperwork and tax forms and created a neat little file folder with coordinating color tabs. I also organized my electronic 
files and assigned them to the appropriately named folders. Per the direction of my new accountant, I went over his checklist list at least fifty trillion times and now I’m all ready for “D” day.
By the way, this accountant - I’ve met him twice, we’ve spoken on the phone at least a dozen times, and my instincts tell me he’s a sharp cookie. Ya see, when it comes to “service” providers, I’m a hard one to please. I’m skeptical from the start (no idea why) and I expect the very best…always. Ask anyone who has ever worked for me. If you give me any reason to think you’re a tiny bit incompetent, I will fire you with the quickness. No hard feelings, no questions asked, and no explanations needed. But once you win me over, you can say the sky is red and I’d believe it. LOL I’m tough, but I’m fair and I compensate (i.e. tip) very well.
…back to my new accountant. He survived the Single Ma million question obstacle course and I trust that he knows what he’s doing. He said I was…umm…an “interesting” client and he looks forward to working with me. He has no idea. LOL I don’t think he’s expecting me to bring an organized filing system, but I figured it would make his job that much easier. It’s the least I can do considering the hell I put him through during our first meeting. So I’ve got the tax forms locked and loaded, now all he needs to do is analyze and advise.
But just out of curiosity, I fired up the TaxAct program (FREE federal e-filing for everyone) and completed a test run of my tax liability.
*sigh*
Let me tell ya honey, it wazn’t preddy! Based on my amateur-esque calculations that probably has a 90% margin of error, give or take 10%, the results were a little something like this:
Federal: ($961)
MD State: ($449)
VA State: ($712)
For a grand total tax refund…I wish…bill of ($2,122). I think not!! If this accountant can lower my tax bill by at least $1,500, it will be the best $350 I’ve ever spent.
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10 comments:
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Fabulous Financials v2.0 » The Value of a Competent Accountant (Pingback), 22 February 2008, 12:01
[...] amateur calculations were WRONG. I mean, REALLY wrong. Ha! Ya see, I know what I know but I also accept the harsh [...]
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Have you read the Fabulous Financials comment policy lately?
Hmmm. I’m really interested if the accountant comes up with a different result.
I thought of the money going to the accountant as insurance that you are right, not that he could lower it some way….
“Based on my amateur-esque calculations that probably has a 90% margin of error, give or take 10%…”
‘Nuff said.
If I knew what I was doing, then I wouldn’t need an accountant to confirm that my numbers were right.
I’m wondering if you or any of your readers has had any negative experiences with Turbo Tax. I did my taxes this weekend using the software and I’m worried I might’ve gotten shorted on my federal refund! The numbers on my state taxes looked odd so I didn’t submit Turbo Tax’s version and instead completed the forms myself and came up with different numbers. So now I’m wondering what that means for my federal (I had already e-filed before discovering the discrepancy).
Regardless, I’m done with doing my own taxes. I used to work for a tax preparer so I’m pretty good with the basics, but things are steadily getting more complicated so I think it’s time to bring in the professionals. I’d be interested in hearing how your appointment goes.
Good luck with the accountant!
LMAO at this.. why do I see papers, receipts, screen prints and you cussin like DAMN hahahaaa
Right now I’m in the red with Federal and positive with State.. I’m going to add my business expenses which will bring me back to the positive on federal
Ha, guess you did need an accountant.
Any tips on how to find an accountant?? I’m looking in the DC area too and don’t even know where to start.
The one I found was referred to me by a colleague. I was actually dreading the cold call search, so I lucked up. IMO, the BEST way to find a service professional is through personal references who have been pleased with their services.
Did you add your church donations/tithes?