Since I did a taxes post last year, I thought I should also do one this year, and admit that I am fallible. Yes, I made a mistake on our taxes.
In my excitement to get everything done, I filed on Feb. 3 and within less than a week, we had paid our federal taxes and gotten our state refund. Then, we stopped by my husband’s former residence to visit family, and discovered a 1099-B which I’d forgotten about.
We cashed out an old mutual fund in the beginning of 2011 and put it into an IRA and claimed that deduction on our 2010 taxes. However, I forgot that because we cashed it out instead of rolling it over, we’d have that darn 1099-B. It worked out, though, because re-filing the amended forms will result in refunds from both federal and state, since there was a loss on the mutual fund, an investment made by my husband’s father on his behalf. Because we have to re-file by mail, though, we won’t see that money for 8-20 weeks. I think the 20 weeks estimate is a little extreme, but if you’re going to pad a number, might as well make it 5 months, right?
Otherwise, the taxes worked out fairly well. We owed $327 federal but got back $197 from the state, so in all, only ‘owed’ $130. This is even closer than last year’s numbers, in which we got refunds for both, so I’m pleased. Other things:
1) We saved 8% of our adjusted gross income in our emergency fund in 2011.
2) We paid nearly 18% of our adjusted gross income toward debt in 2011, while only 6% of that was required payments, meaning nearly 12% was debt snowball payments.
3) Total, we saved/put toward debt over 25% of our adjusted gross income.
I’ll definitely be checking in with the 2012 withholding calculator to see if we can’t get our withholding even closer this year, but I think it would be tough.