February Coffee Talk- What does your tax return say about you?
This post is part of February Coffee Talk, as hosted by First Gen American. Please check out her site to see all the other entries in the series.
What can you learn about me from my tax return? There are a lot of the standard little things.
Married, somewhat traditional- we have the same last name, C’s name is listed first on the tax return.
No kids.
We own our home.
We have lots of little investments, some of which lose money.
We donate to charity, but never in large amounts.
Education is important to us- we’re getting both student loan interest deductions and education credits.
Those are the basics. It doesn’t seem like there’s a whole lot interesting there, until you look at one other little line item on Schedule A. We deduct our sales tax- but not the amount you’d get if you used the formula.
What does that mean? It means our house if filled with scraps of paper. All sorts of paper. We are only able to deduct our actual sales tax because we keep every single receipt- every single one. We do our best to put them in a ziplock bag as we collect them, but sometimes paper just floats around our house.
And, if we’ve done this before (we have) it means that we also have to keep these hundreds of little pieces of paper around for the purposes of being audited.
I’ve written about us being near hoarders. This is part of the reason why. We have an important reason for holding on to these pieces of paper- our taxes. And that’s really how it starts- you have reasons to hold on to paper. And then you start holding on to it for no reason, or you just never get around to throwing it out.
Argh- Okay- for my own mental health, I need to stop obsessing over our hoarding tendencies and move on. (And do some cleaning/decluttering.)
What secret vices (or other interesting facts) would your tax return reveal about you?
First, thanks for participating. Love reading other people's takes on these topics.
My secret vice that is revealed is that I'm crazy conservative with money.
It probably would have been a better reveal if I hadn't had the post last week about us being hoarders. But the room I need to clean most is the one that has the file cabinet with the tax records, so I was back in there to write this post.
Interesting way to look at it. I think ours would largely say the same type of things. I'll have to consider that perspective once I get our return this year (we just sent our tax info off yesterday to the accountant)
It's one of those weird things, trying to look at your tax paperwork and figuring out what it says about you. There's the obvious, but as Sandy challenged us to find, there are little pieces there that you might not realize, too.
I've never thought about keeping old tax records as hoarding….but it definitely is. Great insight!
We have our tax records going back over 10 years (I can probably shred some of those), but from the years before you could deduct sales tax, it's just a few pieces of paper in an envelope- no big deal. But then when you start getting to the sales tax deduction years, it's an envelope accompanied by 2-3 gallon ziploc bags of receipts. And that's where it start to feel like hoarding.
Holygeez… nope, I could not do that. My receipts go in the shredder or recycling unless it's for something really expensive or important. Wouldn't an estimate have worked out? I guess not if they ever actually want to see the receipts.
They provide a formula people can use to estimate sales tax, but it's based on state, not local. I live in a county that has a much higher sales tax than other parts of the state. The difference between their formula and the actual sales tax we've paid has been as much as a few thousand dollars, even on years without major purchases.
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My tax return would say I am bad at managing my money and I like to have a saftety net come each year with a large tax return…hopefully with my new blog that will not be the case soon….but it is for now!!
This year my tax return also says I'm getting money back.
Sure, it's not great to give the gov't an interest free loan, but if you would just fritter the money away on little things, it's nice to get a return. And it's not like it would be earning much money in interest in your own savings acct anyway.
Love this! I might have to join you in completing this if you don't mind.
My tax return would say that I'm kicking a$$ & taking names in the education realm–I pay virtually no interest on my loans because there are so few of them and I consolidated years ago at an insane rate (1.625!). This correlates well with my post yesterday about how I got a Masters Degree from Harvard for $500.
Thanks for sharing this!
I'm certain Sandy won't mind if you join in a little late.
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