Every year for as long as I can remember I have done my taxes myself on taxact.com and gotten a nice refund back. I even turned my not so tech loving hubby on to taxact a few years ago. This year we had a ton of things for our taxes, not to mention our first year filing jointly.
After spending a few weeks waiting for all our W-2s and his 1099, I plugged in everything as usual and didn’t like the resulting number in red glaring back at me. A number that we owed. Ouch. Stupid 1099, even for 4 months, cost us a fortune.
Gone are the days of getting back $2-3k. Hopefully temporarily.
We held off on filing hoping a solution would appear to reduce that horrible number. Well, yesterday we went to H&R Block which, while helpful, was also EXPENSIVE. We spent a couple of hours working with 3 ladies who knew various things about 1099s and managed to reduce that horrible amount owed by about $300. However, in the end we owed them $350 in fees. Um, what?
We also learned from the client at the next booth that adopting a child earns you
about up to $10k in a refund. Wow. I had no idea. And we want to adopt siblings. Insane. But also I’m sure there’s people that foster/ adopt just for the money. Sorry, tangent…
It was a very expensive lesson to learn, but from now on you can bet I know how to track all our deductions and expenses from his 1099. And with my new job, I might have a 1099 as well. Ugh.
If you or your spouse/significant other are a 1099 employee, how do you track expenses, etc? I need to implement a system immediately and find receipts from the past 4.5 months. For once I’m thankful for hubby’s pack rat wallet tendencies.