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Home > Update on tax bill goal and note on interest rates

Update on tax bill goal and note on interest rates

April 1st, 2016 at 06:23 pm

Today I remembered that last year AS got a property tax rebate, so I emailed my tax guy to see if she would this year too. She is getting a slightly smaller one, but it helps! This doesn't reduce the actual deficit because we don't get it until September, but it does reduce the projected deficit in our budget.

Property tax refund: $535

Actual deficit: $10,359.22
Projected deficit w/ AS future income & property tax rebate: $540.11

I checked the interest rates of all our non-0% credit cards and compared to our line of credit. The card rates range from 15.24% to 23.15%, whereas our LOC rate is 9.25%. So if we have temporary shortfalls in our account in April and May as I've predicted, it will be better to temporarily withdraw money from the LOC than to only make partial payments to one of the non-0% credit cards.

Posted in Uncategorized | 6 Comments »

6 Responses to “Update on tax bill goal and note on interest rates”

  1. ThriftoRama Says:
    April 1st, 2016 at 06:33 pm 1459535594
    1459535594

    Maybe I missed something.

    Do you have any tax withheld via work, or was that amount to low?

    I understand the tax bill uncertainty for self employed work. I'm living that every day. I guess I was confused about why the bill was so big, and why more of it wasn't covered with your payroll deductions.

    Silly me.

  2. ceejay74 Says:
    April 1st, 2016 at 06:41 pm 1459536090
    1459536090

    I'm not really sure if any of this is due to not having enough withheld at work; I think mainly it was the $80K my dad gifted me from the WV deal. Tax guy had recommended I set aside $15,200, but I guess he miscalculated somewhere along the way. I think he wasn't thinking of paying taxes to WVA? I'll definitely look over the return when I get it back to try and see if I messed up anywhere else or if that was it. Owing $2K to MN may indicate that we didn't withhold enough, but I'm not sure at this point because there were a ton of unusual factors in play this year.

    And then with AS's, I just really had no idea how much to withhold and wasn't sure how to figure that out. I asked tax guy and a few other people and got vague answers, so I looked up effective tax rates for her income (or something; I forget how I came up with the numbers I did). My guess is whatever I used to estimate didn't factor in self-employment tax.

  3. FrugalTexan75 Says:
    April 2nd, 2016 at 12:31 pm 1459600313
    1459600313

    Kind of unrelated question ... how do you get property tax refunds?

  4. ceejay74 Says:
    April 2nd, 2016 at 07:17 pm 1459624636
    1459624636

    It's an extra thing the state of MN does. They also give tax breaks to renters under a certain income.

  5. ThriftoRama Says:
    April 2nd, 2016 at 08:18 pm 1459628322
    1459628322

    Oh yes. You always have to figure in 16 percent for payroll taxes, in addition to income tax. Being self employed costs money!

  6. Frugaltexan75 Says:
    April 3rd, 2016 at 04:47 am 1459658865
    1459658865

    Ok. I'm betting NE doesn't do that - just like no prepayment discount for property taxes.

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