Today is April 11th. And I’m frustrated that my taxes are still not done.
Tax time is stressful and frustrating. For many people you have little control over when they will be done and that is so frustrating.
My personal accountant has to wait for my business accountant and the K-1 before he can do my taxes. The later my K-1, the later my personal taxes.
What is also frustrating about tax time is that you never get the best from your accountant. The accountant is so busy just completing the tax returns that he or she has little time for advice, strategy, or suggestions other than the minimal, “you should put money in an IRA.” I have post-it’s all over my return with questions on strategy, deductions, and ways to get the most out of my tax situation. And this is the worst possible time for my accountant to review any of this. Yes, every year I think I should call him a couple months after tax time and pick his brain, but I get busy and it rarely happens.
Confession time: I haven’t been paying quarterly estimates. (In my defense I have been much better about flossing!). But seriously, tax time is much worse when you end up writing bigger checks. And next year I will finally do this. I always make retirement contributions and the HSA contributions. But, I have hated writing those quarterly checks. That stops now. Next year, I will only have to write a few small checks. That’s the plan.
The other frustrating reality of tax time is that you’re absolutely, positively not making as much money as you think you are. This is why budgeting is so helpful! April 15th is the big wake up call when everyone realizes that the government is taking 28% or more of Everything you make. You’re not making $50,000. You’re only making $36,000 after the government takes its share. It’s really depressing. Which is why you Need to get every legitimate tax deduction you possibly can. Roth, 401K, HSA, etc…
Tax time is frustrating. But it’s part of life.
The truth is that maxing out a Roth retirement fund over a lifetime will make you wealthy. The math is unequivocal on this. So, if you’re smart enough to be doing that, you’re way ahead of the game to be financially independent. And that’s really good news.