Taxes Done…Waiting for Refund

March 12, 2009

Well, Monday I received my K-1 Statement from our company accountant and was able to finish my tax return and file electronically through TurboTax that night. The next day I received a notice that my refund will be direct deposited into my checking account on Friday March 20th.

Also, I have decided to stop having federal income tax withheld from my monthly paychecks and instead I will begin paying Estimated Taxes quarterly. Because I had federal income taxes withheld the first 2 months of the year, the total tax to be divided into the four quarterly payments was significantly reduced. So now when I get paid each month I will have to put aside a specific amount in a easily accessible savings account so that each time my quarterly payment is due the money will be there. Additionally, because my quarterly payments were reduced the amount I will have to put aside each month is much less than the taxes I was having withheld freeing up additional cash for debt reduction.

Between getting my taxes straightened out so that I’m not giving Uncle Sam a large tax free loan throughout the year, trying to stick to a budget, and reigning our expenses, I finally feel like I’m starting to get control of my finances.

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