Wednesday, April 15, 2015

Ah, taxes are so complicated

Being my usual organized self I filed my taxes as soon as possible. Then I received more tax documents related to my inheritance. Just so you know, these K1s don't have the same deadline for delivery as everything else. They made filing amended returns complicated so I had to take it all to an accountant. Good thing that I did.

Turns out that since 2011 when I turned 62 I have been eligible for deducting some income from Georgia state taxes. We are redoing state returns for those 3 years as well and will get back a nice  amount of money.

So it seems that I need help each time something significant changes in our financial lives! When we move back to California and each year we start receiving retirement income from various sources I will have to remember this and hire a professional to do our taxes for those years to make sure we do everything correctly! Self sufficiency is only good if it produces the correct result LOL.

Happy tax day.

3 comments:

  1. Arrrggg... those K1s and their unique deadline. I guess it's a good problem to have but I really wish all types of tax-based documents were due to us at the same time.

    Good that you found out about the tax deduction available when you turn 62 in Georgia. I'm pretty sure we don't have anything like that in California so take advantage of it now!

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    1. I had never heard of such income exclusions which is why I didn't claim it for 4 years for myself and 1 year for my husband. The short version is that currently in Georgia at age 62 citizens may exempt up to $35,000 individually (or $70,000) of retirement income per couple from the state income tax. You don’t have to be retired, just have retirement income which is defined as including but not be limited to interest income, dividend income, net income from rental property, capital gains income, income from royalties, income from pensions and annuities, and no more than $4,000.00 of an individual’s earned income. At age 65 the caps are much higher.

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  2. I agree with you there. I'm thinking of paying someone to check on my pension when I retire. Apparently, the state always gets it wrong (and not in your advantage). Sometimes, forking out some money is well worth it !

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