Itemize You say!
In August of 2003, Karen and I bought a house. Well, we obtained a great deal
of debt and the opportunity for equity.
In February, I itemized my taxes for the first time. You hear about turning 30,
buying a house, getting married, having children, but this is in itself a sort
of coming of age. An intangible step on some unspoken list. Well, not all that
unspoken. After all there are only the two certainties: Death and Taxes.
All my life my taxes had been simple. I worked. The government took money out of
my paycheck. I earned a pathetic amount of interest on a savings account. I took
the standard deduction.
Now whole new worlds of complexity opened up. I’ll hastened to say that as the
child of an Enrolled agent, I certainly didn’t prepare my own taxes. Yet for the
first time, I sat across from my mother as a client and listed my life. Charity,
professional organization dues, interest payments, a stack of paper details.
She asked me questions. She clicked on keys and then my return went on
electronic wings. Three weeks later, my refund was electronically deposited in
my bank account.
I can’t say as I have anything profound to say on the subject. I’m not sure that
a neophyte such as I should dare give tax advice. I leave that to the
professionals.
Although, just as an aside, Enrolled Agents are the only tax preparers licensed
by the Federal government (CPAs and attorneys are licensed by the states.) and
are required to take continuing tax classes to maintain their licenses. When
selecting a preparer, remember that individuals who specialize in bookkeeping
may not be up on the latest tax law.
When having your taxes prepared by a major tax preparation firm, keep in mind
that the preparers with the most experience work the best hours. That is to say
that having your taxes prepared in the evening or on the weekend may be more
convenient, but you are more likely to be assigned to a first year preparer.
Tax preparers at small firms work an enormous number of hours during the tax
season. Well, that only makes sense. However, even the best preparer will make
mistakes in late March or early April that they would never have made in early
February or early March. So, don’t procrastinate.
And really, of the my two inevitable choices, yeah, taxes. The other can wait
awhile. After all, lifeamgood.
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