Today’s post is super short. Know why? Because 2013 will be our first year ever that we aren’t taking the standard deduction on our taxes – the first year that we will be itemizing. For everyone that has been doing this for a while, more power to you! This is a pain in the butt.
Finding All of Our 2013 Tax Deductions
Our life is complicated. Before 2013 though, itemizing would have been a silly decision since the standard deduction for a married couple filing jointly was higher than what our deductions would have been – we had a small, low interest mortgage, no rental house, no HOA fees, no large medical expenses, etc. We just filed our taxes, Schedule C forms for side hustles, and investment income stuff. Done.
But we bought a new, larger home at the end of 2012, rented out our first home, tripled our housing expenses (and have that extra income), had major dental expenses, and so on. For the first time ever, it will benefit us to dig up every deduction we possibly can find. That means that I’ve spent the last 6 hours (and am not done yet) putting together totals for:
- All Property Taxes
- All Mortgage Interest
- Home Insurances
- Flood Insurances
- HOA fees for the new house
- Health Insurance Premiums
- Medical Expenses
- Utilities to take off a percentage of for our home office deductions.
- Rent house deductions like contracted help, maintenance expenses, and mileage.
- Volunteer mileage and expenses.
- Side hustle income, expenses, and mileage.
I Hope It Pays Off
This coming Sunday, Mr. BFS will do our taxes by hand as usual. By the end of the day, we’ll know whether we will see any of our $32,400 ever again. I’m betting on $3000+. Mr. BFS thinks we’ll be lucky to get back $1000. Wish me luck!
Any deduction venting out there? Tax stuff is AWFUL!
FYI: I worked at a dead end cubicle job from 2005-2011 for about $30,000 a year. I went self-employed in July 2011 and make between $80,000-$100,000 through blogging, a rental home, and professional pet sitting. If you’d like to start your own site (link to my free step-by-step guide), I highly suggest checking out Bluehost (my referral link with a nice discount for you). I even have all of my favorite tools on a resource page – I hope they help you too.
This all gives me the time to be with my aging family members, the flexibility to stay close with my friends and family, and it should help if we finally get pregnant too! Please contact me any time at budgetingfunstuff*at*gmail*dot*com with questions or just to brainstorm! I’d love to help!