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TSP and taxes

February 28th, 2012 at 12:27 am

I just changed my TSP to transfer 65% of my current savings (1300) to the 'c' fund (S&P index with expenses of 0.025) and routed all my current contributions to that fund. My other choices are tracking the Dow or International index. Or the 'lifestyle funds' which have a different percentage of the other funds. S&P index fund with low fees works fine for me.

I got an estimate on my taxes, the business lost $17,000 so I am getting $6000 back. I had a choice of putting $5000 in a ROTH or $2700 in a trad IRA (and getting more back). Decided to do the ROTH.

I started an automatic monthly withdrawal of $250 for taxes. I need to save more ($833.34 is full ROTH for k and I) but I also need to pay off k's card.

Update Feb 2

February 2nd, 2012 at 02:42 pm

I didn't get my W2 yesterday. I can't log on to the system (but did figure out why, HR has my email wrong) The paper ones are not to be found, and I'm not going to drive up tomorrow to try to get them. I will just drop it off at the accountant when I get it. She doesn't file my taxes till the time anyhow (in case there are law changes) so I have a few months.
I also still can't find k's form and I've convinced myself I"m not even sure it exists. Last puzzle to solve.
I also got my first 1099-K from paypal. The new law is they have to issue it if you make more than $20,000 gross and have 200 transactions. The form just shows gross sales, and there is a $428.66 discrepancy whereas I think I made more than they are reporting. I am not going to try to reconcile the numbers but just report what I think is correct. I only report total gross earnings (not stratified by source like paypal) so there isn't any checking involved anyhow. I have sales income from 3 sources - paypal, credit cards, and cash/money orders.
The paypal 1099-K is nice because it does list the earnings by month, so I can see the variation.

Most of the limits I set for the stock purchase for my IRA SEP were hit (all but IHG). I just checked and have made $1200 so far in the last few days. I know this isn't real 'cause the prices will probably go down, but its fun to think about :} I'm in these stocks for a while, that's why I chose them.

Update Jan 29

January 29th, 2012 at 02:16 pm

Finished with taxes. Yesterday I organized all of the official documents I need to bring with me. I remember not so long ago I only had a couple of W-2s and a mortgage interest statement. This year I had to organize my forms in plastic sheets.Income in one (W2, 1099s, 1099-INTS), mortgage interest, stock sales. And then I have 2 big things that I am also bringing in accompanying info, 'cause I'm not sure what is wanted.

One is for an investment house I sold this year, we got income for a few months and then the sale and a few costs associated with the sale.

The other is for info about rolling retirement accounts with fidelity into an IRA I'm managing. I had a Defined Contribution Plan, a 403(b) plan, and a 457(b) plan. Some of it was already taxed so I took that out and didn't roll it over (k was out of a job at this point). Fidelity confused me by sending me FOUR 1099-Rs, but they add up to what I rolled over and what I took out. I am also bringing my own printed proof that I rolled money into an IRA, I'm not sure if that's required (or if there is something more official I need).

I am only missing 2 forms, a W-2 from one of my jobs which I am going to get on Wednesday. And a form that I think I misplaced. Its for income for k for cashing out a retirement plan. He only had the job before this job for 8 months. We decided to not roll over the amount and pay tax. From my bank statement I think it was $3517.22. And I think I saw that on an official form recently. I haven't thrown anything out, so if its here, its here.

Happy Dance, Taxes are done. And I have a week before the accountant meeting to think about things.

Update Jan 27

January 27th, 2012 at 09:32 am

I think I have my IRA stuff as organized as I need for taxes, so I'm going to move on. I still need to list the stocks I sold in non-IRA accounts that I need to account for taxes.

And I should continue on the accountant form to see what else I need to do. Week and a half till the appointment...

I need to print out 1099s today.

And I can work a bit more on organizing and start to track down the official statements I don't have yet. I got one of my W-2s. I have a plan to spend time next Wednesday when I'm on campus to track down my other W2, either try to get into the system or figure out where the paper copy went.

If I can get that done today that will be good progress, and perhaps I will be inspired to do something else. Plugging away at this a little bit a day has really been helpful, its made the task not so overwhelming and easier to stay focused and amused. Its how I organized the house, an hour or two a day.

I will be happy when taxes are over. Noon at Feb 4th. My meeting is at 10. I bring Ks stuff too. Since he wasn't working 1/2 the year I'm just claiming everything and he'll do a EZ or whatever the simple returns are. I know I could do it, but I like the accountant to do it for continuation, and I"ll need her help next year if we do split things. (cross fingers he keeps his job...). I used to do my taxes myself, even with the business (sole proprietor so it goes on my form). But when k and I got together and I had to start dealing with stock options and such, I went to an accountant. Saved me a few thousand that year on deductions I didn't know about, so I haven't done my own taxes since. I've had a few naive people tell me it must be nice to not have to do anything for taxes since I have an accountant do it all. I then baffle them by saying I tend to take 10-20 hours to prepare.

Too many accounts!

January 26th, 2012 at 08:16 pm

I have too many brokerage accounts. There. I've said it. Now I suppose I have to do something about it.
At least get them organized.

I got my history from my 4 investment accounts with USAA, they uploaded back from 2007 to the document area and I printed them out and put them in folders labeled. I have a joint brokerage (with k), a traditional ira, a roth ira, and a sep ira. And a mutual fund that was cashed in this year. I sold stock too, but it looks like I sold some at a loss to make the total gain only a few hundred. So that won't add to my tax burden. I have a lot of cash in these accounts that need to be invested, when I have time to think about what to invest in. I rolled over an IRA. I invested about half in July and made $3707 or 15.89%. That includes the NDN that was sold.


I also have 2 first trade accounts that I have had for a while. I used to do a bit of day trading and quicker investments, during the 90s. I took most of the earnings out, but never sold any of the stocks that lost money, so I have some bizarre things going on. I have a few stocks without symbols I can't trade. and a few work 0.004 or 0.002 or 1.46.
Of value:
8 shares of ARET for $9.28
235 shares of GERON for $488.80
and $2167.88 cash.

My 99 cent only store (NDN) stock sold 1/17/2112, 99 shares for 2178. I will need to declare than next year.

I have a ROTH IRA account with First Trade it has 488 shares of GERN for $1015. And about $5 in the cash account.

I have an ING brokerage account. I set it up with automatic investments coming from the business account and buying NDN stock. The stock buying was automatic too. The stock I had got sold for about $7300 and I transferred that back to the business to pay a credit card. The business is increasing stock and has a bit of debt. I am going to have to pay tax on the stock sale next year.

I used to have an etrade brokerage account. I'm going to continue to ignore it. Its probably gone.

The only IRA I can add to is the SEP IRA, and I think only if the business makes profit. I make too much income to add to an IRA. I am putting money away through one of my incomes, which I also need to organize. I just started this year, I think its about $4000/year. And I think its getting matched.

I also need to organize k's retirements, he has a few from a few jobs too. This will be the major project after taxes.

Update Jan 24

January 24th, 2012 at 11:51 pm

The payments hit, k's credit card is now $13,378.85.
Feels a lot better.

Started to organize the investments today and realized I don't have very good records. Got a bit overwhelmed. I am going to call one bank and see if they can get me a history. I'll call Thurs or Fri.
I downloaded jstocks to keep track. But I don't have all my purchase info. And the info on the dividends reinvested. Much I seem to be lacking.

I do need to figure out the investments I need to report on taxes within 2 weeks. Can't wait till that deadline is done and the tax game put away for a while. And hopefully I won't have to come up with piles of money at tax time. Last year was about $18,000 ($8,000 was to my SEP IRA from profits from the biz). I didn't make money this year. And I sold a house at a lose that should offset the non-taxed consulting income. Hoping....



Update Jan 23

January 23rd, 2012 at 10:07 am

Aren't I boring with titles!

I did some moving around of money last night. I decided to empty out some of the savings accounts I'm not really using to pay off K's credit card. Its at $15,562 and bothering me. So I decided to see how much I can throw at it.

I transferred: $750 from the 'house' fund. That money is designated for our new fence we are building with the neighbours. But they want to put it off for a bit, and it probably won't be that much, so I'll just find the money when it happens.
I also had $110 in 'my' savings (I have savings accounts for K and I to save for personal things, but I"m not putting anything into them while we owe on credit cards) $100 out of 'mortgage and bills', $350 out of 'Vegas' (already paid), $60 out of 'etc', and possibly $1000 out of taxes.

I set up the transfers to happen today and they haven't gone through yet and they don't appear to be in 'pending'. Hopefully I actually did set them all up last night. I had had a few glasses of wine so perhaps I never hit submit *grin*. (I don't think so, but I"ll know by tomorrow).

I also set up a new transfer/account, to go to Italy in April 2013. I am taking one niece to the UK in Nov, and the other said she would be ok with that if I took her to Italy. I love Italy, and am excited to have the chance to go back. I only have 2 nieces and I love spending time with them, and I won't get the chance to travel with them alone forever. Soon they will be having children and families and responsibilities. So I ran the numbers, $4500 will do a nice 10 day trip. $5000 is about $330 a month, so I"m saving $350/month and should have enough by April 2013 to cover most of the trip.

Still plugging away at taxes. I started filling out the accountants forms and entering numbers. Its a great form that shows the numbers from last year so I can compare. I have highlighted a few things I still need to check and do. I haven't looked at any stock sales. My 99 cent only store stock got sold when the company got privatized, I need to get all that info together too. And of course I have multiple brokerages. TO DO - organize investments...

K was unemployed for 1/2 the year and since they take taxes out as if that is your typical yearly salary, he has overpaid and will get a refund. So I think I am just going to take all the deductions and have him just claim the standard credit. Next year we can get complicated with splitting things. Next year, when I"m all organized and ready :}

Still need to get the official documents together. I don't have any of my w2s. i also need to make 1099s for contractors and mail them out. busy, busy, busy.

Yet more on taxes but the end is in view.

January 22nd, 2012 at 01:43 pm

I'm still plugging away at preparing taxes. I find it humourous when people think that I don't have to do anything since I have an accountant. The reality is that I spend hours and hours working on it. The business books take 20-30 hours to do the entire year (and this year I SWEAR I will keep up and not do them all in December). And then organizing my personal info takes 1-2 hours a day for a couple of weeks. I really need to keep up on organizing this through the year too.

Today I finished entering my business travel. I took a trip to Germany for a meeting and then vacationed for an additional week with my mom (I paid). We rented a car and stayed in castles, had lots of fun. I can't write off that part, but I can write off the part associated with work, including my airfare.

Jan 12 update

January 12th, 2012 at 03:11 pm

I'm trying to blog every day to stay on track and spend time focusing about money and not wasting it playing on the web. I love playing on the web :}

I was inspired after blogging yesterday to finish entering the remaining statements for my hobby business. I tend to call it a hobby business because its not my main job, but its a real business, it did gross $150,000 last year and employed 22 people at least part-time. Plus me, but I work for free :} Its run from my house and I do a lot of advice, but the daily stuff is run by others. I do all the financials though. I am currently a sole owner so it all goes on my personal income tax.

Other things I need to compile for taxes - charity donations - work trip receipts (Germany, ?), bank info (interest, mortgage interest), Kansas house sale info + income before sale, stock sell info (wasn't there a letter about this from last Jan?), ... I'm sure I"m missing things. Next year I will be more prepared because of this wonderful blog that will help keep me organized.

TODO - organize paperwork and set up files so they will be maintained over the year instead of just putting everything in a 'to be filed' hanging folder.

I bought a $50 coupon for a local Mexican restaurant for $4 yesterday. Yes, FOUR dollars. From Restaurants.com. Regularly $20, but I got $16 off by going through upromise and typing in DINNER for a coupon. My friend is getting 13% for her student loan. I chose a place I haven't been that I think my nieces will enjoy. Its an inexpensive place and I'm not sure we can even eat $50 worth!
I also bought some toner and other things for the business using the upromise link, Staples.com offers 2% so I bought all the things I usually do at the end of tax time (1099 forms, storage boxes, etc) and got free shipping, and they will arrive before I could have gone shopping anyhow.

I also opened a new type of savings account and transferred my 6-month emergency fund to it (and set up the $1200/month automatic savings). The old savings was getting 0.25 (going to .3 at 25,000), the new one is 0.30 now going to 0.35 at 25,000. Not a huge difference. The CD rates weren't worth the lock. This savings is something to look into when I start studying my investments... (TODO)