Is anyone else scared to do their 2010 taxes? I'm terrified! I've estimated our tax bill at $5000. I don't want to know what the real number is! Good-bye emergency fund! Why is our bill going to be so high?
We converted C's 401(k) from his old job to a Roth IRA late last year. We now have to pay taxes on that money.
C's part time job is not taking any taxes out of his paycheck. We now have to pay taxes on that. He didn't bring home a huge amount of money but still - no federal or state taxes were taken out.
Things working in our favor? C's unemployment income did have taxes taken out, both federal and state. In fact, they took out a decent chunk. Hopefully that will help offset.
I took 4 weeks off without pay last year to supplement my maternity leave. My income was lower last year and so my tax bill for income taxes will also be lower.
And finally we had our third child last year. Hopefully there are a couple tax deductions for three dependents that will help us out.
I'm in no way a tax expert so I don't know how all these factors will play together but I have been stalling on downloading some of our tax forms. I just need a bit of time to play ostrich.
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2 comments:
You may owe a lot less than you think. Ease your worries and start plugging in numbers. An extra child is a HUGE tax savings!
Me too! In fact I just told my husband tonight that we need to get our taxes done EARLY this year by an accountant (instead of doing them ourselves) in the event that we owe we will have some time to save for it.
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