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Time to Warm Up My Check Writing Hand

March 15th, 2014 at 08:56 am

I finished our taxes a couple weekends ago. We owe. That's perfectly OK. Since our number one source of income is my husband's business, our income and therefore our taxes fluctuate. We pay estimated taxes based on prior year earnings, and pay no interest or penalties. We don't spend based on what we make (which varies quite a bit); we spend at a sustainable level and save fairly aggressively. We have the money to pay what we owe (it's only a portion of what we earned after all). Owing means DH's business made more money in 2013 than in 2012, so of course owing is A-OK.

We wait until we have finished our taxes to contribute to our tax-deferred retirement accounts (the exception being my 401K contributions through my employer), again because of income fluctuations and eligibility variations. I know most people like to contribute over the course of the year, because that is what makes sense for them. Our approach works for us.

As soon as I finished our taxes (using Turbo Tax Home & Business on-line through Vanguard's site for the discount) I scheduled our tax payment by electronic transfer close to the due date. How nice that you can finish your taxes and arrange the payment but not actually have to pay until the due date! Then I ordered the transfer of funds from on-line savings to our local (check-writing) account.

This weekend I'll be writing checks, lots of checks, for: DH's SEP IRA contribution, my itsy bitsy SEP IRA contribution (not done for years but can do for 2013 thanks to eBay sales), my Roth IRA contribution, and DH's Roth IRA contribution including catch-up. Also my niece's B-Day is coming up so I'll send a check off for her college fund.

In mid-April I'll mail off our first 2014 estimated tax payment.

Lots of checks!!!

This weekend I'll also do my brother's taxes. I usually do his before ours but this year he was slow getting his W-2 to me.

And I've made a decision about my catch-up contribution for 2014. A little change of plans. I won't be making it to my 401K but to my Roth, since I prefer the funds I have selected for myself at Vanguard over the funds selected by my employer and available through my 401K.

Onward ...

5 Responses to “Time to Warm Up My Check Writing Hand”

  1. creditcardfree Says:

    Sounds like you have it all planned well. I'm sure I'd be waiting to make contributions if we had a business, too.

  2. frugaltexan75 Says:

    Yep, that does sound like a lot of checks to write. Smile

  3. rob62521 Says:

    What wonderful planning. You are incredibly organized. Hope your hand doesn't get cramped from all that writing, however!

  4. scfr Says:

    rob62521 - You are very kind. Actually, there are areas of my life where I am NOT organized (I have boxes full of photos that I have been wanting to organize and digitize for MONTHS). Work and finances are another story. I learned early on how they can spin quickly out of control so I make effort and try to have good systems in place there.

  5. CB in the City Says:

    I read "The Elegance of the Hedgehog" a few months ago and found it quite touching!

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