my taxes are much lower

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Submitted by scaredyclassic on July 2, 2020 - 4:55pm

Submitted by Coronita on July 12, 2020 - 7:42pm.

Finally got my taxes done.

They were more than last year, but also I earned a lot more than last year. Fortunately, they were much more generous with underpayment penalties this year, I had no federal underpayment penalties.

I think my withholdings were reasonable in line. I ended up owing $2000 federal+state for myself and $2000 federal+state for my kid, mainly from dividend income from kid's custodial trust account.

2020 will be interesting.

Submitted by plm on July 15, 2020 - 11:14am.

Too bad you owe money. I usually overpay considerably every year and get it back since I don't want to pay a penalty. Worked out well for me this year, I just got the direct deposit of the refund and it was over $100 more than I expected. Seems like they have to pay 5% interest on the refund due to the delayed filing due date. If I knew that earlier, I should have waited till today to file to maximize the interest payment. Getting free money from the government is great.

Submitted by sdrealtor on July 15, 2020 - 11:30am.

Im gonna be waiting a while to get my refund and will get to enjoy that 5% interest. There are millions of unopened returns sitting at the IRS. CA was able to process and issue my refund quickly

Submitted by Coronita on July 15, 2020 - 12:01pm.

Funny part is that for my own taxes, I didn't have any penalty to pay.

For my kid's taxes I had to pay a $56/$24 federal and state penalty.

I forgot that she had a lot of dividend income from some Valero stock bought a long time ago when it was in the $20ies. So I got dinged by not paying any taxes on the dividend. I guess it's ok since it's on an auto-reinvest in shares plan. I wonder how much longer the dividends are going to last at this rate. Lol.

My kid is a lot luckier than me. It seems like my kid's investments are doing a heck of a lot better, lol

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