2014 Tax Returns

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I managed to get our 2014 federal and state returns done last week. I then had a couple bad dreams about them, thinking I left something out. I still need to print and mail in the city return and the partnership return for our real estate LLC. And then pay estimated federal and city taxes. Also, I need to contribute $1,500 more to my SEP-IRA for 2014; a couple of my clients paid their bills via credit card last week, so I should have that done by Tuesday.

Our federal return ended up being a mere 17 pages this year. Our state return has been awesome the last two years since Ohio began providing tax incentives for small businesses. The city counts more income than the federal government when figuring taxes and doesn’t really care about deductions.

2015 taxes should be similar, but after that, all bets are off!

Time for Taxes

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I’m about to get started on this year’s tax adventure. I sometimes long for the days I could fill out the 1040-EZ and be done. Now, with three businesses, an additional rental property, and various other taxable transactions, we usually end up with about a 20 page federal return, not including the partnership return for our real estate LLC. Thankfully, I also use personal financial management software, so I keep track of income and expenses throughout the year which helps tremendously at tax time. Here’s hoping we don’t end up with a huge bill!

Happy Tax Day!

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After a day enjoying our success, the mundane has reappeared. I’m just back from the mailbox after sending out 2014 Quarter 3 estimated taxes to the United States Treasury. On the drive to the office, I heard a commercial about a company that can help negotiate tax debt down to 89% of the outstanding balance; sometimes I do wonder what that might be like - we’d definitely have substantially more money if we didn’t pay taxes. And then I write the check.

The only silver lining on tax days this year (April 15, June 15, September 15, and by January 15, 2015) is that Ohio, in an effort to become more small business-friendly, substantially reduced state taxes paid by small businesses in 2013. We overpaid enough in 2013 that we are all paid up for 2014 for estimated tax purposes. It is a relief to only worry about federal and city tax payments this year.

No matter where this journey takes us, I expect estimated tax payments to be part of it for the foreseeable future. Do you get to celebrate four tax days a year, too?