Sunday, March 05, 2006

Taxes

I did my taxes yesterday. I used Turbo Tax, as I have for the last seven years or so. I kept better records this year, but it still took about four hours to enter all of the deductions. I'm getting a decent-sized refund which will probably get blown away quickly when the medical bills come and I have to buy disposable things for the baby -- food, diapers, etc.

The only unfortunate thing, tax-wise, is that this pregnancy spans two tax years. I was just short of the amount of medical expenses needed to deduct them on my 2005 taxes. I'll probably incur enough medical bills to deduct them in 2006, however. And then there's the Child and Dependent Care Credit. I think I can claim to be "head of household" as well? Not sure.

2 comments:

Claude said...

You can probably go the HOH route next year, but you can also use the software to take you through different scenarios to show you which works out better for you.

Michelle Pessoa said...

That's the best thing about TurboTax -- it lets you try out different options until you find the one that gets you the most money back.