That's amazing. I'd guess the sunflower state (I was born in Kansas, my grandmother made me a quilt of sunflowers that I had growing up so I always remember the state flower) must have a lower than average cost of living.
Got my Tax Refund today
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Sunkist
Senior Member
debodun
SF VIP
- Location
- way upstate in New York, USA
I'm still waiting for some 1099s.
I should mention, my $1200 average monthly expenses are fixed costs (mortgage, utilities, phone, insurance, etc)… food and fun are extra. I put those on a credit card that I pay off in full every month, from my social security. I’m frugal, but not cheap. I spend money on my hobbies (various forms of art), travel, and my house & yard, but minimal on fashion, hair, makeup, etc.
Aunt Bea
SF VIP
- Location
- Near Mount Pilot
My taxes are done and dusted.
I just need to write the checks for what I owe for this year, the estimate for next year, and the fee for the accountant.
I don’t mind paying taxes but it galls me to have to pay estimated taxes before they are due or face a penalty for underreporting.
I just need to write the checks for what I owe for this year, the estimate for next year, and the fee for the accountant.
I don’t mind paying taxes but it galls me to have to pay estimated taxes before they are due or face a penalty for underreporting.
Knight
Well-known Member
I completed ours yesterday, no refund for us. As I suspected the interest & dividends did us in. After finishing I adjusted the percent up that is deducted from our accounts. I'll see next year if that is enough or if I have to deduct from our soc. sec. payments.
It's not fun paying but considering we are retired over 30 years now & living like we hoped, I'm not complaining.
It's not fun paying but considering we are retired over 30 years now & living like we hoped, I'm not complaining.
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Why are you paying the estimated taxes before they are due?
If you are speaking about federal taxes, as long as you pay 110% of the prior year's tax amount (if high income, otherwise just 100%) you will not have any penalties. Also, if you take a distribution from an IRA and you specify a percent to be withheld for fed taxes, those are counted as having been paid monthly all year (so you can pay your taxes in December without having to get penalized for late/too-little quarterly payments).
IRS Safe Harbor Rules for Estimated Tax (2025-2026)
- General Rule: Pay at least 90% of the current year's tax liability, or 100% of the previous year's tax liability.
- High-Income Earners:If your Adjusted Gross Income (AGI) last year was over $150,000 ($75,000 if married filing separately), you must pay 110% of the previous year's tax to qualify for the safe harbor.
- Alternative: If you owe less than $1,000 in tax after subtracting withholdings and credits, you are not subject to penalties.
Withholding as Prepayment: The IRS considers amounts withheld from IRA distributions as prepayments that count towards your total tax liability.
Timing of Payments: Even if a large distribution and withholding occur in December, the IRS typically treats this withholding as having been paid evenly throughout the year. This is advantageous for avoiding underpayment penalties compared to making a one-time estimated tax payment at the end of the year.
I didn't know Social Security was taxable.. that totally sucks.. first pay taxes on income when you're earning it, and then pay again..?!?!
"Most" States do not Tax SS.
Imogene
Senior Member
- Location
- Middle Tennessee
I broke even - no money owned or getting back. I guess this beats the proverbial Poke in the eye with a sharp stick
Same as last year. Likely the same as next year.
Had to pay the tax preparer. I think it’s stupid they charge according to how many pieces of paper they handle for a person. I at least got their senior citizen discount which knocked $40 off the bill…..
Same as last year. Likely the same as next year.
Had to pay the tax preparer. I think it’s stupid they charge according to how many pieces of paper they handle for a person. I at least got their senior citizen discount which knocked $40 off the bill…..
I could see that being an okay way to charge for someone who is itemizing (with a lot of little paper receipts) or doing business taxes. But my experience is that collecting all the pieces of paper is the hardest part, and the rest is just entering the info at prompts on the computer.
The only value I think they could add would be to provide advice on tax efficiency strategies, but I don't know if tax preparers do that, probably not?
MACKTEXAS
Well-known Member
You can use the ITA (Interactive Tax Assistant) online to determine if it's even necessary to file a return. It's a simple, straightforward test, just fill in the blocks.
click here for ITA
click here for ITA
OneEyedDiva
SF VIP
- Location
- New Jersey
At least you got a refund. For years, I've had to pay the IRS (not the state). I'm interested to see how much this $6,000 will help with that. For some unknown reason, the State of N.J. keeps reducing what they take out of my pension for taxes....that's part of the reason I wind up paying.
Tom52
Member
- Location
- The Villages, Florida
I filed my federal taxes this morning. No state tax in Florida. Taxable income was higher than last year but I am getting an unexpected refund. Last year I had to send a payment. I assume the reason for the refund is partly the tax credit for seniors and partly due to tax credit for installing energy efficient HVAC.
No more money in my pocket I just apply the refund to 2026 taxes.
No more money in my pocket I just apply the refund to 2026 taxes.
Paladin1950
Still love 50's & 60's music!
- Location
- Mohawk Valley, NY
I got my tax return back in 8 days. Got almost $1,000. Still waiting for my state tax return. It always takes much longer and it's always much smaller. Way smaller. This year under $20 ($19 to be exact).
Aunt Bea
SF VIP
- Location
- Near Mount Pilot
My accountant charges a base fee and then a fee for each tax form that he completes as opposed to actual time spent.
I mail my paperwork to him and only meet, over the phone, for a few minutes to go over the final numbers.
I think that a fee per form probably works to the average persons advantage because they are not being charged an hourly rate for the chit chat and other routine distractions that are normally a part of a face to face meeting.
To me it’s similar to an auto mechanic using a flat rate manual to charge for car repairs as opposed to paying by the hour. Sometimes you win and sometimes you don’t.
It probably makes less difference today, when most of the tax prep is simply data entry into a canned tax software program, than it did years ago.
“I'm proud to pay taxes in the United States; the only thing is, I could be just as proud for half the money.” - Arthur Godfrey
“No Taxes. Let’s just tip the government 15% if they do a good job.” - Pat Paulsen
OneEyedDiva
SF VIP
- Location
- New Jersey
Well, I guess that $6,000 did make a difference! For years I've had to pay about $274 at filing. This year I'm getting back $430!
Interesting how the $6,000 deduction from the OBBB is set to expire in 2028. Isn't that an election year? Hmmm...
As for states that "do not tax SS", this state (Colorado) makes a big deal about telling us that. However, it's a lie. They allow a deduction of the first $25,000 of income; anything over that is taxed. Which includes SS.
And, tax-free municipal bonds? The income from that is included in the calculation of SS income taxation. So it, too, is not "tax-free"; it just increases the amount of SS that is taxable. To hell with them. I sold the bonds. Let 'em borrow from somebody else.
The Senior Deduction of $6,000 did not pass through to the state. It is deducted after the AGI, which is the number the state uses. That deduction did not affect the states. This state quietly took away several large senior deductions. My state taxes last year were $150. This year it's $750. Almost exactly the amount of the additional credit the feds gave us. It's a wash.
Interest income pushed me into a higher tax bracket. The additional tax due was more than the interest.
Although my gross income went up last year, net income after income taxes went down, even with the $6K additional deduction.
As for states that "do not tax SS", this state (Colorado) makes a big deal about telling us that. However, it's a lie. They allow a deduction of the first $25,000 of income; anything over that is taxed. Which includes SS.
And, tax-free municipal bonds? The income from that is included in the calculation of SS income taxation. So it, too, is not "tax-free"; it just increases the amount of SS that is taxable. To hell with them. I sold the bonds. Let 'em borrow from somebody else.
The Senior Deduction of $6,000 did not pass through to the state. It is deducted after the AGI, which is the number the state uses. That deduction did not affect the states. This state quietly took away several large senior deductions. My state taxes last year were $150. This year it's $750. Almost exactly the amount of the additional credit the feds gave us. It's a wash.
Interest income pushed me into a higher tax bracket. The additional tax due was more than the interest.
Although my gross income went up last year, net income after income taxes went down, even with the $6K additional deduction.