BB27 Posted February 19, 2010 Author Posted February 19, 2010 Glad I could be of assistance. If you want to go from happy to estatic I can let you know how big of a check I wrote last year. No, thats ok. If you told me, I'd have to tell you how big of a check I had to write last year (had to borrow money from my Mother in Law!!) Lets just be happy that we're both happy with the way we see it!
Chef Jim Posted February 19, 2010 Posted February 19, 2010 No, thats ok. If you told me, I'd have to tell you how big of a check I had to write last year (had to borrow money from my Mother in Law!!) Lets just be happy that we're both happy with the way we see it! Actually I'm not happy about a smaller check this year. That means my income dropped considerably last year.
Albany,n.y. Posted February 20, 2010 Posted February 20, 2010 Getting $ back from feds, paid the state 1/10th what the feds are sending me. Reason I'm getting a good amount from the feds is combination of paying a ton to the state last year (inherited a taxable IRA) & writing it off on this year's taxes & the make work pay credit that just about everyone who isn't making a ton get. My refund is double what it will be next year. People should only get refunds if they are not living paycheck to paycheck. When I was, I made sure I never got a refund & took the extra $ in my paycheck.
Chef Jim Posted February 20, 2010 Posted February 20, 2010 Getting $ back from feds, paid the state 1/10th what the feds are sending me. Reason I'm getting a good amount from the feds is combination of paying a ton to the state last year (inherited a taxable IRA) & writing it off on this year's taxes & the make work pay credit that just about everyone who isn't making a ton get. My refund is double what it will be next year. People should only get refunds if they are not living paycheck to paycheck. When I was, I made sure I never got a refund & took the extra $ in my paycheck. Was your inherited IRA very large? If so you could have streched it out over your lifetime. Meaning you could have taken an amount based on your life expectancy taking a little bit each year and paying taxes only on that. That allows it to continue to grow tax deferred, of course as long as it earns more than you're required to take out.
Albany,n.y. Posted February 20, 2010 Posted February 20, 2010 Was your inherited IRA very large? If so you could have streched it out over your lifetime. Meaning you could have taken an amount based on your life expectancy taking a little bit each year and paying taxes only on that. That allows it to continue to grow tax deferred, of course as long as it earns more than you're required to take out. There were a few reasons we didn't do that (split it 50/50 with my sister). We didn't know it was a tax deferred IRA until we received the checks. We didn't know much more about the accounts other than the account numbers, amounts and the place we had to send the paperwork to close them. I think my sister called them & they sent us paperwork to fill out to close the accounts. We were doing the same thing on bank accounts & CDs that were not taxable & it just seemed to be another account. When the checks arrived we found out when they stated how much was taxable. Now I know I could have done some rollover even at that point, but I figured screw it, I'll just pay the taxes & get it over with. Also, when I got the check I called the IRS to make sure it was taxable. In the process, they told me I'd have to find out what kind of account it was. When I called the company, I found out they were a subsidiary of AIG, who was in serious trouble back then, so I really wouldn't have wanted to do anything that kept the money in their hands.
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