Before I say anything else I have to say…ahhhh. Or maybe AHHHHH! is a better way to say it? Today is Tax Day aka IRS Day aka where’d all my money go Day. If you’ve noticed it’s been quiet on the blog that’s because I’ve been busy pouring over paperwork, numbers, and the receipts and expenses that come with a small business. Over the weekend and the last few days I’ve been stuck on the computer whenever I could be working on our business and personal taxes. I finally mailed off all my tax paperwork today-4 returns in total. (2 for personal, 2 for business, 2 for the state, 2 for the feds) I’ve never let it go so close before!
Before I go any further explaining my absence, if you aren’t self-employed or a contract employee you may not understand why taxes take me so long. Small business owners file separate returns if they have an official company. If it’s just you doing business you can just add your income to your regular tax forms. I have a co-owned LLP (limited liability partnership) which essentially means my husband and I have a business.
I have to submit not only my income, but my expense (and the rules around those are somewhat complex) and pay taxes most people get taken out of their regular paycheck. There are also lots of other pieces of info that have to be filled out before filling. It’s a lot of work.
After hours and hours of prep prior (reconciling accounts and making sure I had all my expenses accounted for) to sitting down to actually do our taxes I still had to spend about 15 hours this week filling out forms, compiling info, and more.
This is one of those times I’m kicking myself for not outsourcing. At this point it’s time to move beyond the stage of our business where DIYing makes sense. My hourly rate is higher than I’d be paying someone else, and my sanity is valuable (just ask my kids!).
In any case I’m DONE. The check is in the mail for the state of PA and I added a nice sum of money to my retirement account to balance out what we owed. It’s not equal, but by adding funds to my retirement account I get a credit back for what I contribute (a perk of being self-employed) which reduces our tax and what we owe. It’s like paying future me to sit on the beach, and yes it’s all legal. 
If you’re self-employed look into a self-employed 401(k).
I took a pause to consider blogging on Monday, but when I looked at what I had planned to writer about, food, I couldn’t do it. I’ve also had an incredibly weird stomach bug over the past week. I only got sick sick twice, but my stomach has been in knots ever since. It could be the stomach bug plus the combination of stress that comes at this time of year, but I finally ate a meal last night with real ingredients in it. My appetite is slowly coming back, too.
I’ll be back with more content later this week-careful I might overload you! And I’ll be on twitter tonight chatting about kids and money with the fine folks from T. Rowe Price. You can read more about it and join us tonight at 8pm ET using #TRPKids.
Now I’m off to soak up some much-needed spring weather and maybe find some great Tax Day freebies. 😉
Kelly
Robyn Wright (@RobynsWorld) says
ARGGGGGHHHHH is the way I feel about tax day. It stinks! I gave up on doing my own taxes though and pay someone to do it now - that cost was worth my sanity to me. It doesn’t make what I always OWE the fed and state any easier to swallow though.