Tax Tales
For the first time since Barb and I married and began filing joint tax returns, it appears that the best deal for us will be to take the standard deduction. The itemized deductions, thanks to a delusional tax overhaul that began changing the landscape in 2018, just aren't what they used to be.
I prided myself in my diligence for scraping up every deduction that we were entitled to. We kept logs of charitable mileage; every trip to Learning Ally, every trip to teach an ESL class. We logged every item that went to Goodwill, church pantry and Coats for Kids, among others, along with the dollars contributed, of course.
We recorded all medical mileage. Every. Last. Trip. We even kept up with the parking garage charges. Who does that? I faithfully took the 15% depletion allowance for our oil bidness - along with the Stephens County tax assessment, of course. We were thorough. And it was for naught.
Oh, I know that the Individual Standard Deductions were raised substantially, off-setting the loss of other deductions. And keeping up with all those details was a pain. But it was a good pain, knowing that I was squeezing every penny I could from the IRS.
So can I stop recording all that detail? Will the tax reform be reformed and re-reformed? Probably. And it is a lot of trouble. But...
Figuring out this years taxes reminded me that I went through a lot of old, old tax returns a while back. Returns that we as far back as 1965, 3 years after we married.
We were living in the house we bought from the suddenly unemployed HSU football coach. I had been working for Fidelity, but in the summer went to work for a film company that split off (and quickly went broke). Barb worked for AISD, subbing and as a teacher. We made $9,713 between us. We paid Dr Steckler (in advance) $175 for "complete OB care." We borrowed the money.And, we got a much-needed $295 back from the IRS.
For the first time since Barb and I married and began filing joint tax returns, it appears that the best deal for us will be to take the standard deduction. The itemized deductions, thanks to a delusional tax overhaul that began changing the landscape in 2018, just aren't what they used to be.
I prided myself in my diligence for scraping up every deduction that we were entitled to. We kept logs of charitable mileage; every trip to Learning Ally, every trip to teach an ESL class. We logged every item that went to Goodwill, church pantry and Coats for Kids, among others, along with the dollars contributed, of course.
We recorded all medical mileage. Every. Last. Trip. We even kept up with the parking garage charges. Who does that? I faithfully took the 15% depletion allowance for our oil bidness - along with the Stephens County tax assessment, of course. We were thorough. And it was for naught.
Oh, I know that the Individual Standard Deductions were raised substantially, off-setting the loss of other deductions. And keeping up with all those details was a pain. But it was a good pain, knowing that I was squeezing every penny I could from the IRS.
So can I stop recording all that detail? Will the tax reform be reformed and re-reformed? Probably. And it is a lot of trouble. But...
Figuring out this years taxes reminded me that I went through a lot of old, old tax returns a while back. Returns that we as far back as 1965, 3 years after we married.
We were living in the house we bought from the suddenly unemployed HSU football coach. I had been working for Fidelity, but in the summer went to work for a film company that split off (and quickly went broke). Barb worked for AISD, subbing and as a teacher. We made $9,713 between us. We paid Dr Steckler (in advance) $175 for "complete OB care." We borrowed the money.And, we got a much-needed $295 back from the IRS.
1966 - Back at Fidelity, I made $8,300 and listed Rob as a dependent for the first time. Big expense that year was Hendrick Hospital - $258.85! Got a whopping $419 refund.
1967 - Barb is listed as a homemaker, but income is up to $9,846. Expenses included payments to Sears and to repay government loans. First Schedule C for a side-line tape duplicating business that grossed $2,738; got $269 back from IRS.
1968 - Two dependents, $400 back. Schedule C showed $2,628 gross, $782 profit,
1969 - Fidelity has become Hallmark, salary up to $10,800. Profit from tape duplication up to $1,131. $286 refund
1970 - Big year. Address change to Kamar Lane in Austin. $794 profit on Schedule C. Still paying off government loans. $400 refund.
1971 - Living on Dryfield. Owed IRS $115 (only $175 duplicating business) but got a notice of an error in our favor and got back whopping $47. A note said there was a $50 Christmas bonus.
1972 - Barbara is teaching with Mrs. Streety at North West Child Development. Total income $12,900; got back 184.95 (and, after filing 1040X to account for a missed loan origination fee, another $51). Doctor bills indicate that this was the year of my appendectomy.
1973 - Living on August Dr; $15,365 income. $21 profit from tape duplicating. Why bother? Barb got a 1099 from Sweet Publishing for editing work. Expenses include Capitol Medical Clinic, which is still our primary physician's office. $237 return.
1974 - $16,528 wages include Brentwood Christian School, Sweet Co, and NW Child Development for Barb. Schedule C had a $112 loss.
1975 - $398 refund on income of 17,500. No schedule C. Got $150 for expenses representing Sweet Company at ACU Bible Teacher's Workshop (our vacation). Drove 262 miles delivering Meals on Wheels and 331 miles "driving volunteers to do yard work for sick church worker." Hmmm.
1976 - $286 refund on $18,000 income; includes Barb teaching at Brentwood and working at Sweet.
1977 - Owed $283 on $24,500 income. That's what happens when you make the big bucks.
1978 - $385 refund on $26,000 income. Phew! Barb had income both from Brentwood Christian School and from Sweet.
1979 - $833 refund on $25,800 income; expenses include allergy shots.
1980 - Big year - $865 return on $32,600 income. Deductions include UT classes and Austin Public Library card fee (we weren't in the city limits yet).
1981 - Owed $137 on $34,321; W2s from 1st Presbyterian Day School and NPC. Expenses include Spanish lessons and UT classes. New schedule C for "DP Consulting" grossing $1,944.
1982 - At bedtime on April 14, Barbara casually remarked, "Oh by the way. We owe the IRS $2,300," whereupon she turned off the light and promptly went to sleep. I, however, did not. Where, oh where was I going to come up with $2,300? In the morning!
It was a big year - $48,600 income, including $11,300 for my consulting and a W2 from UT for a class Barb taught. Expenses included mileage, etc. for soccer coaching.
And that's the 1040 story of the first 20 years of our filing jointly.
It was a big year - $48,600 income, including $11,300 for my consulting and a W2 from UT for a class Barb taught. Expenses included mileage, etc. for soccer coaching.
And that's the 1040 story of the first 20 years of our filing jointly.
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