I am afraid this is exactly what will happen. We will end up paying more tax in the long run but in different forms of taxation. I don't like it.

 

[QUOTE=fltsfshr,Mar 27 2005, 03:27 PM] Being as I have an audience of CPA"s... I would like to say this.

My CPA has a bigger boat than I do.
My CPA drives a Turbo Porsche.
If we had a flat or user tax.
Id have the bigger boat
And I'd have the Turbo Porsche.


And listen to them....they only work hard 2 months a year.


Hmmmmmm

 

^ Cute, Rob...

Just got the bad news on my taxes...I was afraid it would be worse, since I had forgotten to change my status last year. Gonna do the IRA contribution, which might help a bit more.

 

Deb,

The only IRA contribution that you can make (if eligible) that can help you out right now is to a Traditional IRA. Unfortunately, this will be fully taxable when you withdraw it.

You might want to consider a Roth IRA. It won't give you any present benefit, but it will be (including the growth) tax free when you take it out. In the long run you may be better off with a Roth.

There are a few factors to consider such as the future value of money, your age, the interest rates and the growth potential. You might want to ask your accountant for his/her advice.

Your tax liability shouldn't be so bad next year because you brought your withholding into line with your filing status. Your taxes will probably be about the same, but the amount that you owe will be lower. Also, you will be less at risk of a penalty.

 

^ A Roth does seem like an excellent way to save.

Glad you got your withholding straight, Debs. Nothing worse than penalties.

 

We generally recommend the Roth to all of our clients who are eligible to open an IRA. There are always exceptions and variables, and there are times when a Traditional IRA might be advantageous.

Still, we generally think that the Roth is the better way to go.

 

I called my CPA at 7 pm tonight to ask a quick question. He was not there so I left a message.

 

It's Sunday, it's Easter, we've all been working very long hours, and we all have families too. What did you expect? Did you work today?

 

OK....the was in jest...I should have said (j/k).

My CPA has surprised me by answering the phone at all hours, so I really thought he might be there. There was no intention to sully the rep of our long-suffering CPA's....please accept my apology.

PS- He's Jewish and does not celebrate today's holiday.

 

Me too, but knowing that it's a holiday, and that you haven't seen your kids or wife in days makes it hard to stay late on a Sunday.

Be very careful about calling this time of the year. Absolutely call if your query is important, but don't call for a trivial question that can wait until after the 15th.