Got my Tax Refund today

SueBee said:
I do travel several times a year. and yes, I live exclusively on social security income.
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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.
 
SueBee said:
The $4641 a month in average expenses sure seems high to me. Mine average $1200 including PITI mortgage, car and umbrella insurance, although no car payment as mine is paid off. I don't have credit card debt and live alone, but quite nicely and I do travel several times a year. and yes, I live exclusively on social security income.
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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.
 
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 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.
 
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Aunt Bea said:
it galls me to have to pay estimated taxes before they are due or face a penalty for underreporting
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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 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…..
 
Imogene said:
I think it’s stupid they charge according to how many pieces of paper they handle for a person.
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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?
 
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.
 
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