Though our tax accountant actually does our tax returns, I’m very involved in keeping track of everything and presenting him with all the figures. When we started flipping foreclosures in 2005 we incorporated, and our tax returns became more complicated than I was comfortable with. Also, it’s complicated with the kids in college and all the tuition and fees deductions and education credits. One of these days we’ll go back to just having rentals and I’ll be able to do the taxes again. Maybe.
I go through the prepared return as carefully as possible. Sometimes, mistakes are made – either mine or his. For example, I realized when I was gathering everything for 2013, that I had forgotten to include the property taxes for our old house on the 2012 return. So, we’re filing an amended return for 2012.
I keep notes from year to year, too. For example, I made a note to keep track of all the money we’re spending on insulation this year. We’ll be able to claim it as a residential energy credit. Despite increasing Jay’s withholdings, we owe the tax man. I wasn’t keeping in mind that we’re down one dependent and I wasn’t expecting the big capital gains from our mutual funds. It’s not like we put the gain in our pocket!
Oh well, at least it means we had a good year. 😉