Retro: Tax Time


Tax Time for FI Champion

I have put it off long enough.  But with the April 15th deadline looming in the near future, I really could not wait any longer.  That’s right, it’s tax time!

Up until this point in my life (well, “our” lives since I should include my fiance) it has been fairly easy around this time of year.  Personally I never made that much money throughout the year.  This made taxes really simple.

Taxes During College

I would receive the W-2 form from whatever summer job (or on-campus job) that I held.  It typically showed earnings of $3,000-$5,000 in wages for the year.  I would fill out the Federal and State 1040 forms and usually some small refunds would follow.  Easy!  Took no more than 2-3 hours to fill everything out.

Taxes Now

It’s a bit more complicated.  Forget the idea of 2-3 hours, this is more like 10-20 hours!  First off, during the past year this was the most money we have ever earned.  Hey, I’m not complaining.  I just recognize that it makes tax time…..well…..less easy all of a sudden.  But there were several other issues that impacted us.  Here is the list:

  1. Dealing with more income/money
  2. Two people are earning money (me and my fiance)
  3. We are NOT yet married
  4. Owning our first home
  5. Owning our first rental property, which is really 1/2 of our home
  6. Sales of several stock investments
  7. Contributions to Roth IRA and 401k retirement accounts
  8. Earning money in two different States

All of these elements affected how our Federal and State tax returns were filled out.  And there were a LOT of forms this year.  In total, we had to fill out and send in TWO sets of Federal 1040 forms and TWO sets of State 1040 forms.   That’s right.  We cannot yet combine our tax forms, because we are not yet married.  That means this year’s tax returns need to be filled out separately.  One for me and one for my fiance.  Sigh.

With our 1040 forms, make it one for me and one for you

All complaining aside (for now), I am happy to report that I made a lot of progress over the past two weeks.  The tax forms are all filled out and I expect to drop them in the mail later this week.   So how did they turn out?  Let’s dig in a little.

Federal Forms Needed

Gone are the days when I only needed to fill out Form 1040 and maybe Schedule D.  I still need those, but I need several more now too!  Here are the forms and schedules that made up this…

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Note From Author

The full “Tax Time” post has been back-dated to 4/4/2006.  But it was originally published to the Financial Independence Champion ( Blog on 09/09/2016.

Why Back-Date Posts?

I mentioned in my first post how this blog will be a little different than any other ones you may follow.  I still plan to talk about personal finance, rental property, travel, and the pursuit of financial independence.  But to give all these topics the right context and the full picture, I need to start at the beginning.  I need to fill in the details of life from 2005 until now.  I want you to see the successes, the struggles, and all the milestones we passed along the way.  Therefore most of the “new” content will be back-dated to their appropriate dates in 2005, 2006, and beyond — until we’re caught up!

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