Sunday, March 5, 2017

File 2016 Federal Income Tax/Carlos Pueblo

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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