2008 It's Tax Time Again!

I can't believe how fast 2007 went by (well, we were busy raising an infant but still!) and now, as we wrap up the month of January, it's time to get ready to file our taxes again.

Because we had income in 2 different states one of which has State Income Tax, stock options we exercised, 401(k)s and IRAs to rollover, moving expenses and real estate we sold last year, we decided to hire a CPA last year. I have always done our taxes for us but just didn't feel comfortable last year with so many deductions and allocations of our income.

Mr. Barre is awesome, also having worked in Big 4 for a large part of his career, as I did and we hit it off well last year. He had some really great advice for us regarding our investments, tax-shelters for Emily's future and selling our house, as well as how to best appropriate David's paychecks to maximize his 401(k), our IRAs and to ensure we DID NOT get a refund in future years, which is really important... I just hope we did it correctly last year so we don't get a huge refund this year, like we did last year. We like having all our money each paycheck and being able to invest it and earn interest for ourselves rather than letting the IRS keep it for a year and make interest for themselves.

We are really looking forward to working with him again this year, as soon as we get David's W-2 in the mail, that is. I hope we claimed enough exemptions on Davids W-4 last year to not get a refund this year but I suspect this is not the case as I have done a rough draft of our taxes myself this past weekend. I'll be bummed if we get a refund larger than $1,000 this year. :( We are happy about the fact that we did max out David's 401(k) this year, both our Roth IRAs and we put Emily's entire college fund into an ING account, which earned a great chunk of interest for us this past year. Wahooo! :)


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