Whew

[susandennis]

My day turned around just after I posted that entry. Things got much better. I got much more careful. There is still one computer problem that I could not get fixed but I decided to save it for Monday.

I got home early. I go in earlier on Fridays and so get out earlier. I tossed a coin... do taxes or more purging?

Taxes won. I just had to know how much trouble I was in financially. And... I can officially say, WHEW! I have enough money to pay my taxes and my 1st quarter estimated taxes AND still pay for my condo makeover - or at least most of it - without having to cash any investments in or borrowing.

Yahoo! I've been very strict with my budget since I started this contracting gig. Every month, I put the check into savings and then put the minimum I need to live on into checking. I've only had to dip into savings a couple of times. Mostly I've been good and now it has paid off. Go me.

So tonight I am taking the night off. TV and knitting and reading. Tomorrow it's back at the project.

Comments

[rivendweller.livejournal.com]

You must feel very accomplished! Good job.

[susandennis]

I do, thanks... But, can I ask you a tax question? I've looked all over and I can't find an answer.

I did not pay any estimated this past January - mainly because I had overpaid before and some because I forgot :). I now have a good idea of what my total tax bill will be next year so I have a good idea of what my quarterly estimated will be. TurboTax agrees with my estimate of estimated (isn't that nice of them?) But their dates confuse me.

I think I should owe 1/4th this past January (so should pay now), 1/4 in April, 1/4th in June and 1/4 in September? yes?

TurboTax seems to think I should pay in April, June, September and January of 2006. So I really only pay for 3 quarters in 005. Yes, no?

Mainly I'm trying to keep jail time to a minimum here.

[rivendweller.livejournal.com]

Turbo Tax is correct. The 2005 estimated tax payments are made on the following dates: April 2005, June 2005, September 2005 and January 2006. Even though the final estimated payment in made in 2006, it is for the 2005 tax year. The first estimated tax payment for the calendar year is due in April.

Does that make sense? I can try to explain it another way, but I just might make it worse. I'm starting to confuse myself. :-)

[susandennis]

I don't have to understand... you have convinced me! It's that bit about paying the rest of 2005 in 2006 which sounded strange but I'm convinced. Thanks so much!