I managed to totally freak myself out last night. So much so, I sent D off to bed by himself so that I could work on it late into the night.
First of all, I got my month end statement from work. It was good. I made $222.16 extra (take home) over projections and now I have my income for the year. Total extra net income for 2009 comes to $10765.43.
All was good until I inputted the numbers into my online income tax software. I thought I was close to breaking even with respect to income tax. Here I was thinking I got the system down pat.
It turns out I didn't, not by a long shot. When I started replacing last year's expense numbers with this year's, I noticed a trend.
My frugality efforts at home has significantly rubbed off at work too. My default expense tax numbers from last year were too high, way too high, some cases 50% too high.
So you know what that means, I will owe next April, in the thousands. Not happy that I will need to make room for that expense on the spreadsheet.
I still have Dec. expenses to add in but it will not likely make a significant impact as I am not anticipating spending much on my business in the next few weeks.
Yikes. My first frugality horror story!
I can now understand why people scramble for "write offs" at the end of their fiscal year.
D thought this would be a great use case for going out and leasing my EVO... (he was joking) Fortunately I am not the type to do such spur of the moment things for tax relief.
Really, when you think about it, you still need to spend first and that goes against the point of this exercise.