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Taxes Complete and SEP IRA Funded: Next Time With a Professional

This article was written by in Taxes. 3 comments.

I spent a few hours yesterday completing my tax return. Although I had wanted to work with a tax professional, my procrastination interfered with the plan. It wasn’t as complicated as I expected, but there may have been some deductions I missed. I owe a few thousand dollars, which was less than I originally anticipated but more than I wanted to the federal and state governments in total.

Once again, I chose TaxAct to calculate and electronically file my federal and state tax returns.

When I finally meet with a tax account this year, I will arrange for a review of the returns from the past few years.

SEP IRA contribution completed

While completing the tax return, I was able to determine how much I could contribute to a SEP-IRA for 2007, so I initiated transfers of $4,350 into Vanguard‘s Total Stock Market Index Fund (VTSMX) and about $8,480 into Prime Money Market Fund (VMMXX) to represent the employer contributions.

I intend on creating an automatic periodic transfer from the money market into the stock index.

The initial contributions as well as the tax payments will be deducted directly from my ING Direct account this week.

Economic stimulus payment

According to the Economic stimulus payment calculator, if I entered my information correctly I can expect a $600 payment this summer.

It will be disappointing to see my net worth drop this month due to my tax payment. I’ve increased my estimated payments for 2008 to attempt prevent a large payment next April.

Updated February 6, 2012 and originally published April 14, 2008. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about Luke Landes and follow him on Twitter. View all articles by .

{ 3 comments… read them below or add one }

avatar Trent Hamm

I don’t include my tax savings in my net worth, since I know it’s something I’m going to be paying out very soon. Whenever I do a net worth calculation, I just act as if the tax savings don’t exist.

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avatar matty dread

hope you find a good tax pro. i have tried a few and have paid them a lot of money to make mistakes and cause a burden on my time.

Maybe I just didn’t pay enough….

Went back to doing everything myself. At least that way I am responsible for my own mistakes and keep myself educated in the process.

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avatar Mike

I always try to make my payment on April 15th as large as possible… that means I got to keep the money for longer. Well, okay, I don’t really want the payment to be large, but I just want to pay as late as possible. :)

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