5-Things Wednesday: Taxes

I wish I read my post from last year about filing taxes with Free File Fillable Forms before filing them this year. Really, what was I thinking! The refund probably would have been much, much quicker. Last year, it only took 7 days to receive the money!

This year it looks like it will take more than a month.

I filled this year's taxes around Feb 20th, same time, within couple of days, as last year. I say "around" because I don't have a signed and dated copy of 1040 with me, but my soft-copy of the file was last saved on the 16th, and I know I waited a few more days to review one aditional bank document. So, the delay shouldn't be because I filled 'late'. But I did file by mail.

It's not like I need that refund to come super quick. I just don't like long delays. So, here are some things I think could speed a tax refund.

1. I said I don't think the timing was an issue for my refund delay, but I do believe that filing early increases the chances for a quicker return. With taxes, I don't think I ever waited until April 15th. Why would I - it's my money I want back! So I usually file as soon as I get all the documents from different institutions, around early February.

2. Even though I prepared all forms this year and placed them in an envelope, I waited with sealing and mailing until I could confirm all numbers with bank tax documents. I used old bank statements to fill the forms, but one official, paper bank document was still missing to confirm those numbers. After a few days of that envelope sitting on the kitchen counter, I went back through some folders and found that paper, which arrived much earlier. I could have filled days earlier if I had only one place to file all documents regarding taxes (receipts, forms, statements...) that come throughout the year. I actually had all but that one paper together.

3. Some years ago someone tipped me on this great idea to first start preparing taxes with Turbotax software, but not submit anything with them, and thus not have to pay for it. The software asks many questions that I could have missed, so it saves me time of going through all 1040 instructions. And it also increases my chances for maximum refund! With some patience, I can then make sure I enter all the amounts that the software asked me about somewhere on some forms. I am usually able to come within few $$ on the refund amount as what Turbotax calculated.

4. I don't remember when was the last time I did not use automatic deposit, if I ever did. Maybe while in college I did. But it definitely saves the time of going to the bank to deposit the check. Just make sure you follow #5.

5. Probably every year I prepare the taxes, I realize on second, third, even forth review that I missed something. Miscalculated some math, forgot to sign, or didn't enter correctly bank of SS numbers. So, I quintuple sextuple check all the numbers, files, and signatures.

The IRS Refund Status page just bumped my expected refund date by another week, to April 10th, "due to processing delays". Whateva!

Tax Time

Taxes are done!

This year I used Free File Fillable Forms for the first time. I never heard of it before. I knew there was a free electronic filing option, and that for some reason, that I could not remember, I didn't qualify for it. I thought that I don't qualify because I file itemized deductions, or some additional schedules or forms. So, I thought to check again, and it was actually the income that disqualified me from using Free File.

On the other hand, anyone can use online Fillable Forms regardless of income. And it doesn't matter which all forms need to be submitted. And you can e-file for free!

This year I needed to file 1040, schedule A, B, D, M and form 5695. It took couple of days to figure out capital gains on schedule D, as I don't usually file this form. (I made a mistake 5 years ago of not filing it for some options I sold, and got audited 1.5 years later with penalty and interest!). I am also amortizing points from refinancing my house loan, so that was another math I couldn't quite figure out. Once I crunched all those numbers on paper, I double checked my calculations in Turbo Tax and the difference in refund was just $1, in favor of my math!

Using the Fillable Forms was a breeze. I just wish they had the option of importing W2 (like Turbo Tax). Instead, I had to fill in all the fields manually.

Not Always Perfect Math

The numbers don't always come out perfect. :)

I was shopping for a plane ticket for my mom, who is visiting me this winter. I usually try to get those international tickets well in advance because I can find better deals. Well, this year, with mom's physical therapy, she couldn't commit to coming until just a couple of weeks ago.

The average price for that ticket, at this time of year, is usually around $1,300. About a month ago, it dropped to just under $1,100 for a day or two, but I didn't have the permission to buy the ticket at that point. And since then, the prices jumped back up, and stayed there.

Finally, when I was ready to buy it, the quotes I got from some ten companies were around $1,400, +-$25, and I purchased it two days ago. Just a couple of hours later I was talking about it to a Bosnian friend who is also looking for a ticket, and while still on the phone she looked it up on Travelocity. The price at that moment, for a flight with just one connection different, was just $927, with all the taxes and fees! Oh-oh.

I quickly called the agency, but they already closed for the day. Tried to email them by replying to the confirmation email they sent me, but that was a no-reply email address. I even attached the Travelocity page with that price. Called the credit card company to try to cancel the transaction, but since it hasn't yet posted, they couldn't do anything about it. So, what to do? I couldn't just buy the second ticket and hope I could cancel the first one tomorrow. I was a bit upset with myself for not checking all the sites on that same day again, even though I was on Travelocity two days before, and all other sites still showed the old price.

Tomorrow morning the first thing out of bed I did was to go and check Travelocity site - the price was back to $1,400+. :( Oh, well. I can't win always. I already planned on spending this much on the ticket. But it sure would have been nice to spend 50% less.