Whew! Just went to the post office and mailed my federal and state tax returns. I was ahead of the game when I started the federal return the end of March. Then uh-oh not enough deductions and we have to pay $1800. Started scrambling to find deductions. Found more deductions but still end up owing $1300 to the IRS. The good news is that we should get a $900 check from the state of California. Don’t understand how that happens as California is broke. But who am I to complain.
Figured out why we owed so much. We only have 5 years or so left on our mortgage. As we all know, your mortgage is mostly interest until the last 5 to 6 years. That means we only paid $2800 in interest in 2016. This year we’ll need to make sure we have more taxes taken out of our pay checks so we don’t have to pay next year.
Has everyone finished their tax returns? You have several hours to go. Good Luck!