2020 IRS Returns in Progress

ir.pngBecause the tax program we use was a little tardy in getting all the appropriate updates (and some are still not ready) we are getting a later start than usual on the preparation of our annual tax returns. We know most of the numbers such that we can input them to the tax program to get a fairly close approximation of the actual bottom line for the tax year. According to early results, we seem to be getting a larger chunk of change than originally forecast for a couple of reasons; first, the entirety of the .gov “COVID Stimulus” went to charitable organizations which was above and beyond and in addition to our normal 501(c)(3) contributions. The second reason for the larger rebate is we decided to itemize some deductions that were to occur in 2021 by paying them in 2020. That got us to where our itemized deductions exceeded the generous standard deduction introduced by the Trump administration by a couple of thousand dollars which resulted in several more hundred dollars coming back to us.

Meanwhile, we’re waiting on the various income source institutions to provide the 1099’s that show the actual numbers which ought to be pretty close to those we already have put into the tax program since I have a spreadsheet for the purpose of tracking and estimation of the final numbers. So, we’re waiting patiently for the paperwork from the IRA, the pensions, the SSA and our financial intuitions to show up. I expect to be e-filed before the end of January for both State and Federal Returns which should result in our refund within a couple of weeks afterwards (if the irs.gov has their feces together, that is).

And, yes – I have already throttled back the Fed withholding for 2021 in hopes that we might break even next time or owe them a little bit. I hate lending the .gov interest-free money.

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