I’ve been reading about which politician will and which politician will not release their tax returns. I’m of two minds on this topic. It does give voters some insight into the politician’s priorities. On the other hand, it also discloses information about a spouse and children that may make their lives uncomfortable if joint returns are prepared.
Since I’m single, I don’t have anyone to protect, other than myself. I usually file electronically, as soon as I possibly can. This year, I waited to mail my tax return until yesterday at 5:00 p.m. I wanted to beat the rush at midnight today! I waited because I had to write a pretty big check to the State of Colorado.
I owed a lot of tax because I took a lot of money out of my deferred income account in order to pay off all debt, except my mortgage, when I retired. In fact, I took out so much money that I ended up in the highest tax bracket. So much for the conservative rant about being the only ones to ever pay taxes!
I had to write a smaller check to the IRS because at the time I took the money out of my 403(b) account, I had federal taxes withheld. If it weren’t so painful to write two checks on tax day, it would be amusing that this is the first year of my retirement and I paid tax on more income than I’ve ever paid tax on in my life.
For the record, I had wages of $44,434 from Community Reinvestment Fund and taxable withdrawals from my pension plan of $101,087. My federal tax liability for the year was $28,735, and my state tax liability for the year was $4,936. I had deductions for mortgage interest and taxes paid on my Mesa County home and a summer home I own in Lead, SD. I’m healthy, and had no health deductions, other than funding a Health Savings Account. Most of my donations were not tax-deductible, because they were made to people running for office, including a little bit to my campaign.
And now you know what kind of politician I am and will be. Transparent.
Homework:
http://www.vaildaily.com/article/20100414/NEWS/100419809/-1/RSS
Since I’m single, I don’t have anyone to protect, other than myself. I usually file electronically, as soon as I possibly can. This year, I waited to mail my tax return until yesterday at 5:00 p.m. I wanted to beat the rush at midnight today! I waited because I had to write a pretty big check to the State of Colorado.
I owed a lot of tax because I took a lot of money out of my deferred income account in order to pay off all debt, except my mortgage, when I retired. In fact, I took out so much money that I ended up in the highest tax bracket. So much for the conservative rant about being the only ones to ever pay taxes!
I had to write a smaller check to the IRS because at the time I took the money out of my 403(b) account, I had federal taxes withheld. If it weren’t so painful to write two checks on tax day, it would be amusing that this is the first year of my retirement and I paid tax on more income than I’ve ever paid tax on in my life.
For the record, I had wages of $44,434 from Community Reinvestment Fund and taxable withdrawals from my pension plan of $101,087. My federal tax liability for the year was $28,735, and my state tax liability for the year was $4,936. I had deductions for mortgage interest and taxes paid on my Mesa County home and a summer home I own in Lead, SD. I’m healthy, and had no health deductions, other than funding a Health Savings Account. Most of my donations were not tax-deductible, because they were made to people running for office, including a little bit to my campaign.
And now you know what kind of politician I am and will be. Transparent.
Homework:
http://www.vaildaily.com/article/20100414/NEWS/100419809/-1/RSS
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