What about tax session?
How do you do your taxses on the trail?
Should I count on a refund from the IRS when I budget my hike?
It is the law that any documents you need to do your taxes should be provided to you before the end of January. I already have all my documents and have done my taxes. If you are a complicated situation and need someone to do yours for you, make an appointment now. You can have the IRS deposit your refund directly to your checking account.
You will have a friendly tax pro (IRS Enrolled Agent) on the trail (me) for in-field preparation services.
Refunds will take much longer than usual. However, you can count it as part of your budget since it should arrive before the end of your hike.
Sent from my iPhone using Tapatalk
I already filed my taxes and am counting the refund in my budget.
Originally Posted by MrGonzalo
I see, I'm in good hands :-)
I use Turbo Tax, great program and it files it for you with the Feds and State you live in.
"I told my Ma's and Pa's I was coming to them mountains and they acted as if they was gutshot. Ma, I sez's, them mountains is the marrow of the world and by God, I was right". Del Gue
I hate doing taxes.Paying them isn't fun, but not nearly so agonizing as keeping up with all the records and filling out all the forms. Ours is complex (rental property & business income). I handle the personal stuff, but my brother-in-law (a CPA) does the business stuff. If our taxes were simple and we were planning a thru-hike, I would DEFINITELY get it out of the way as soon as possible.
You can always file for an extension. If you expect to owe, however, make sure to pay by April 16 to avoid penalties and interest.
Sent from my iPhone using Tapatalk
Best is to file before you leave, preferably well before in case you are missing any documents. Also, that way you know how much of a refund to expect. Just don't expect it too soon. The Feds like to hold on to refunds as long as possible.
Definitely file before you go; however, you might not have all your documents until the 2nd week of February. (Former employers only have to mail them by the 31st of January) I find some things like bank/loan/tuition stuff doesn't come in until mid-February.
Make a list of what you will need, check it off as it comes in, and file when all is received!
Best thing ? Direct deposit, so your money is available while you are away!
My friends call it refund season because they usually get a refund.
Is it true that there is some sales on equipment to use on the trail when the refund comes?
to use that extra cash that came unexpected
A note on refunds... Anyone who received subsidies for ACA health plans via the exchange in 2014 should be extra careful in accounting for expected refunds since subsidies can be partially clawed back if your income turns out to be higher than expected. This is already impacting many people usually negatively by reducing expected refunds.
HST/JMT August 2016
TMB/Alps Sept 2015
PCT Mile 0-857 - Apr/May 2015
Foothills Trail Feb 2015
Colorado Trail Aug 2014
AT: Rockfish Gap to Boiling Springs 2014
John Muir Trail Aug/Sept 2013
It depends how complex your return is. There are a number of deadlines that tax documents have to be delivered to you, depending how you earn money. For example, if you are an employee, your employer has to have their tax documents postmarked by January 31 (since this falls on a Saturday it has to be postmarked by February 2). Self employed people, or 1099 contractors have slightly different tax rules and dates. You are much better off getting basic tax advice from tax accountants who know what the filing rules are for 2014.
Returns will not be quick this year unfortunately, counting on a tax return for budgeting purposes is a little iffy, much like counting on selling an old car to add to your budget, you don't know what you'll get back until it shows up. If there is a question in your return or documentation is missing, there are any number of tax professionals and small/big firms that specialize in returns you can use who can act in your interest if you are away.
Thread drift alert. I don't understand why so many of us Americans use the IRS as an interest-free savings account. I'm not an accountant, but from my meager understanding of the tax code you only need to withhold 90% of what you paid last year to avoid penalties. Just think of all that money you could be earning 1% interest on.
I personally have not received a refund in over 35 years--I have less withheld from my paychecks and save the extra to pay a little on April 15, or pay quarterly depending on what I'm doing that year. Back in the 80's when you got double-digit interest from savings accounts, or in the 90's when stock funds were topping 30%, that made a difference.
"Throw a loaf of bread and a pound of tea in an old sack and jump over the back fence." John Muir on expedition planning
I also try to avoid large refunds but since I make it a practice to always pay estimated taxes to hit the "safe harbor", where I won't owe any possible penalties, I do sometimes get refunds. My income is unpredictable so it is difficult to always estimate exactly. With interest rates on savings accounts well under 1% it isn't that big of an issue today compared to several years ago. I plan to have my taxes done well before April when I get on the PCT.
Tax Season? I thought it was a year round event. But then again, from what I can tell Uncle Sam and his friends are a 50%+ partner in my business.
To answer your question though, just do your taxes now. You should have all your documents, or will have them all in a week. Unless your taxes are more complex than just being an employee and home owner you can use the free version of Turbo Tax online. I use it for my mother's taxes and you can have the refund, or payment directed to or from your checking account. They will charge nominal fee for your state taxes. It is really quite simple and cost effective. Don't pay someone to do your taxes unless they are truly complicated, like mine.
And as others have said, if you are getting a large refund you need to change your W-4 withholding with your employer. It is just plain silly to give this greedy government an interest free loan.
Well said. The "time value of money" concept destroys the idea of using the IRS as a savings account. It works, however, for those who would normally squander their saved withholdings. They are basically paying the IRS a small premium to help them do what they otherwise wouldn't.Thread drift alert. I don't understand why so many of us Americans use the IRS as an interest-free savings account. I'm not an accountant, but from my meager understanding of the tax code you only need to withhold 90% of what you paid last year to avoid penalties. Just think of all that money you could be earning 1% interest on
I personally have not received a refund in over 35 years--I have less withheld from my paychecks and save the extra to pay a little on April 15, or pay quarterly depending on what I'm doing that year. Back in the 80's when you got double-digit interest from savings accounts, or in the 90's when stock funds were topping 30%, that made a difference.
Sent from my iPhone using Tapatalk
If you are getting a refund (for sure) there is no deadline and no penelty for filing late. Do them when you want. I would want the money soon but just saying no reason to panic if you don't do them till after your hike.
Ditto to what Garlic08 said.
I file electronically and last year received my small refund in about a week.
If you have a more complicated tax situation and will not personally be able to file your own return you should give someone power of attorney authorizing them to file on your behalf.
Posting Permissions
Reply With Quote