Taxes, TaxAct and TurboTax

7:35 AM Income, Investments, Life, Money 7 comments
Tax season is here and I filed our taxes last night. We will not be getting as much money as we got last year and to me things still don’t add up correctly but the return was accepted by the IRS. Last year I was trading Apple a lot and you may remember when it took me down, well around that time I incurred a few wash sales and when I sold on that day, I was pretty much going for the tax loss but with the wash sales I did not end up getting as much… I even knew about the wash sale rules but when you’re trying to make money and taking risks, you don’t always reap the rewards. In this case after doing taxes I probably lost around $2,500 so yes, lesson learned, buy stocks and forget about the m, leave the money in there…anyways, no more crazy day trading.

You may recall that I always use TaxAct but for some reason this year it was not taking my CVS stock import file from Scottrade. It would load it and then bring my numbers (refund) way too high or way to low. I don’t understand how to enter wash sales on TaxAct, I tried adding and deleting lines and no luck so this year I decided to go with TurboTax, I must say it was not my favorite. On TaxAct you feel like you are doing taxes and entering more numbers and you see the actual forms but TurboTax treats you like you don’t know anything about taxes. The main advantage TurboTax has was the stock import, all I had to do was log in from TurboTax into my Scottrade account and everything was updated! The numbers added up correctly like I had calculated them and the Schedule D was filled out perfectly with all the wash sales. I don’t recall seeing the Schedule D on TaxAct but that’s probably because I didn’t make it far enough to review since my numbers were not adding up. Enough tax talk, I’m glad everything is done and got to see the approval this morning:

On to the amounts, so last year we got close to $7,000 but this year we will only be getting $5,286. Like I said above, the wash sales had a huge impact on this number but we also made an extra $15,000 in income. Most of that extra income was a promotion at work, my promotion increase, my previous year increase and a couple of bonuses that were paid out mid-year. Wife also had a nice increase this year but we forgot to take out taxes from her dad’s pension so that was another $600 that we lost. Well, technically we did get money and it made us money in our savings account, we just didn’t pay any taxes on it. Since our AIG is lot higher- like way in to the 6 digits, we are starting to miss out on things like the childcare credits and dependent care. We are still getting them but not as much. Since we are making a bit more money now I probably need to stash more on the 401K but I already put in close to 15% so I may be sending more to the 403B or to the kids 529 plan which is already up to $5,000 last time I checked.

Difference with the numbers- so this is what TaxAct had when I put in my wash sales which I knew was wrong and way to high but it passed all the alerts:

Here’s the actual refund amount from TurboTax and it also added up with all my manual calculations and since it passed the IRS acceptance, hopefully that means no audit:

The money is going straight to our Discover Savings account which will put us back over $20,000 in cash savings but I will probably have to take $3,000 out of that and pay… down…. our stupid credit card…

As usual, I am glad the government holds on to most of this money for us. If we got more money every month in our paychecks we would spend it so it’s always nice to get a big refund once a year.

That’s it for our taxes, have you filed yours?? Big refund? Little refund? TurboTax? TaxAct?