File 2016
Federal Income Tax/Carlos Pueblo
Last week I
filed my 2016 federal income tax and moved forward to
the current calendar
year. The commercial software has been made
easier to
complete the return especially for fix income family. I notice
that I am
very closed to the age of required minimum distribution;
therefore, I
must prepare to increase my burden for this additional
income. In
Texas, we pay real estate tax instead of the state income
tax and I
have done that before the end of the year. I always like to
pay taxes as soon as possible, for instance, as
soon as I receive most
of the 1099’s,
then complete it. Of course, I build myself a habit to
estimate my
sources of income of the current year
ahead of time.
All
governing authorities from the homeowner association, city, county
, school
district, etc. tax the real estate owner property while the state
collect
value added tax as its revenue to support the various service. I
can minimum
my expense for only purchase for necessity yet I can not
avoid those
sale tax of my travelling.
The software
asks if we have carry health insurance for the entire year,
that’s
Obamacare. If I don’t, there is additional question to be answered
and of
course additional tax to be collected. Now, I understand why people
hate
Obamacare; however, the Nation advocate humanity and can’t refuse
to treat the
poor and I like to see how the Republican to handle this issue.
Because I
don’t have earned income; therefore, I am not to contribute any
Individual retirement
plan to have some income deduction instead that I am
soon to be
facing the RMD. I am happy for the increase of income and on the
other hand I
don’t like to face the additional tax yet I am still very sure that
saving for
the retirement is a good strategy of tax planning.
I feel lucky
that I have done it right away. Just two days later, I found a last
minute
cruise deal to Chile and Argentina and grasped it, otherwise, I would
be concerned
for not completing the income return while staying on the ship.
What did I
learn this year, I must pay IRS earlier or I’ll face the penalty of interest
which I won’t
get any for the money deposit to my checking account.
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