I’ve been getting my taxes done by Daphne at Sloan and Associates for a few years now. First of all, if you are in any creative field or have any type of nontraditional work life, I highly recommend going to Daphne or anyone else at the office for your taxes. The way she understands how to help me organize my taxes is amazing and I have learned so much from watching her work that has made me better at tracking my deductions.
Even though Daphne has been amazing with my taxes each year, I do still get nervous before going in because I never want to owe more than what I saved. And while I am pretty good with keeping track of expenses, somehow in 2017 things didn’t go exactly how I planned. I knew I screwed up a bit with my tracking of medical expenses in the beginning of the year. That’s because I was expecting to have surgery and I figured that I would hit my out-of-pocket maximum and that would be what I deducted on my taxes. But when I didn’t need surgery, I realized I didn’t track all my medical tests and things. Also, somehow I lost several receipts for meals I had that were business related. Even though those don’t add up to a ton, I like to be as perfect as possible.
So when I went to my appointment with Daphne last week, I was a bit scared that these little mistakes would cause me to owe a lot. I still felt confident that I would owe less than I saved, especially since I paid all my estimated taxes, but it’s always nice to have extra money to help with expenses (like my Pantages tickets which I just renewed). I had spent a few days before the appointment getting extra organized and making sure I had all my forms filled out to the best of my ability. Doing that makes Daphne’s job easier and that gives her time to see if there are any things I missed out on that I should be aware of for the next year. I always err on the side of caution, but because so much of doing taxes is being aware of what deductions I’m eligible for and making sure I do things right, I feel like it’s a game.
When I got to my appointment, I was pretty excited to see Daphne. She’s awesome and we always have fun, even when she’s doing my taxes. And I know she likes how organized I am and it always makes her happy that her job is easier. And just like she had the past few times, she showed me the worst-case scenario first before she put in my deductions so I could breathe a little easier knowing things would be ok. Although this year was the first year that the worst-case was actually higher than what I saved! But I knew it would be going down a lot. I had a lot of work expenses like liability insurance that I had to buy and my home office (which is usually a risky deduction, but in my work contracts it states my office is at my home).
While Daphne was entering in all my deductions and income, we also had fun chatting. She recently got a Disney pass so we were talking about how we want to have a Disney day once tax season is over. I know she’ll need some fun after doing everyone’s taxes! She’s also a musical person and I was telling her about the shows coming up. She can’t do season tickets, but she might join us for a show either this season or next.
It seemed like this year it was much quicker for Daphne to enter everything into the system for my taxes. I didn’t know if that was because I had fewer deductions than I did in the past or that things were just easier now. It did make me have a few moments of minor panic that I didn’t do a good enough job. But when she was done, she told me to look at the screen at what she was about to click on.
She was clicking on the button to say how I wanted my refund sent to me! I couldn’t believe I was getting a refund! I thought she was kidding at first and thought it was a joke, but she was totally serious! Between my estimated payments, my deductions, and the money I get back for overpaying my health insurance (my subsidy wasn’t at the right amount for my income level), I actually was getting a small refund! It was unbelievable but also proof that if I listened to what Daphne taught me each time that I could make sure that I don’t owe much (or anything) at tax time. Everyone is fearful of working 1099 jobs because you owe money at tax time, but if you do everything you are supposed to do it doesn’t have to be that way.
After everything for state and federal was done, I do technically owe a little bit. I owe $30 more in my state taxes than I am getting back in my federal refund. But even owing $30 is nothing compared to what I’ve owed in the past or what I was prepared to owe this time. I know a lot of it was because my estimated tax payments were so high, but paying it throughout the year is so much better than paying it all at once. And it saved me from owing a penalty on federal taxes as well! My estimated payments for 2018 are about what I paid in 2017, so I’m hopeful that I should be able to keep my tax bill at tax time next year low again. I don’t know if I’ll get it down so much that I get a refund (I probably won’t get the money back from healthcare as my subsidy was corrected and I shouldn’t have as much in healthcare expenses), but I am more confident in my ability to track the expenses for work so that what I save for tax time doesn’t all have to go to taxes.
I’m so happy that I do have some extra money that I wasn’t planning on. Some of it needs to go to things I have already gotten (like paying back for my Pantages tickets) and I will use some for bills and toward my credit card debt. But I do want to see if there is something else that is small but fun that I want. I’m not going to use a lot of that money, but maybe getting a purse I’ve been wanting that is not cheap or doing a fun spa day could be a nice reward for the hard work. But I might just put it all toward my debt because that is the more responsible thing to do and I want to get that number to 0 sooner rather than later.
But whatever I end up doing with the money that I have leftover from saving for taxes, I am just so glad that my hard work paid off and that I am understanding how to manage my taxes so much better now. I feel in control with taxes and understand so much more than I ever did. I know what I need to track and what expenses to be aware of. And I have Daphne to thank for that because she really took the time to make sure that when I leave each time that I don’t have any questions or confusion about why my taxes were the way they were. I know she was giving credit to me for working hard and doing all the right things last year on my taxes, but I give her the credit because she is the one who taught me how to do that.
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