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Estimated to Owe

January 27th, 2014 at 03:45 pm

I worked on our taxes this weekend using FreeTaxUSA. Right now it looks that we will owe $413 to the Federal government. We are exempt from state taxes in our state for military pay, so we don't owe or receive anything back.

This is the first year in a very long time where we are unable to itemize our deductions. We were about $1000 short. I guess it is good news...we get a higher deduction than we 'earned' so to speak.

I'm still waiting on 1099Rs from Fidelity for the rollovers we did earlier this year. These will not change our taxes owed since the rollovers are in tax deferred accounts. I just need the numbers to report correctly.

I won't be in to big of a hurry to pay the government, but knowing me I won't want that 'debt' hanging around until April 15th either! Smile I might consider paying the fee imposed to pay the amount owed with our credit card since I know we will get that money back in bonuses. Depends on if I need the payment to meet a goal. I estimate the fee would be between $7 and $10, depending on the service we use.

Speaking of credit card bonuses. I need to double check, but I'm pretty sure we have met our $3000 in spending on our Chase Sapphire card just this weekend. I activated a US Bank card today and paid our Verizon wireless bill with it. That payment already meets 34% of the spending we need to get $125 bonus.

I'm hoping we can stay frugal through the week and keep our spending low. I don't think we will need much of anything, but with three other people in this household I just never know!

Do you know where you stand with your tax return yet? Owe or refund? Any frugal plans for the week?

1 Responses to “Estimated to Owe”

  1. snafu Says:

    We always owe taxes as I can never accurately estimate taxes on non retirement investments. We have high taxes with few deductions and the government wastes enough money without an interest free loan from me! I usually run e-file in early March when all the slips have been issued. I don't submit until the last business day [Apr. 30] as experience has taught there are always 'adjusted' slips which generate a lot of work if the figures have been submitted. Since I'll owe, I'll set up an automatic payment dated April 25th.

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