Tonight, I’m sitting down to file my taxes.Â I’m still waiting for a few 1099s to arrive in the mail, so I’ll probably just enter my basic information and get a feel for where we stand.
Last year, I managed to fully-fund my 403b account.Â By doing so, I have reduced my overall taxes.Â But, I also earned some money from blogging and eBay sales.Â I’ll have to pay income tax and self-employment tax on this income.
I’ve already entered some ‘estimations’ – based on a spreadsheet that I have that tracks my income and expenses.Â It looks like we did a great job estimating our with-holdings, and we’ll be within $100 of where we need to be.Â Of course, this doesn’t mean that we won’t ‘pay’ taxes for 2007 – But it does mean that we did a good job of estimating our ‘prepayments’ – And we avoided giving the federal government an over-sized interest-free loan.
I actually enjoy filing my taxes.Â It’s always interesting to see how the various online tax preparation sites have changed / improved over the years.Â I usually pick two or three online preparation sites, enter my information, and check for discrepancies.
By the way – many tax payers can file their taxes for free.Â Checkout the IRS site for more information about free file.