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Form 1040 (Schedule J) Texas: What You Should Know

Refer to the Form 1040 instructions section for more information. 3/8/2018, 3:44 PM: This is the first month that I've been on a plan! I'm so proud to have the plan (I don't have a family or a credit history). I'm a bit scared but want to be fully committed!! But what I'm really scared of is the taxes (we'll get to them in a second!). I was nervous about this plan because it has “deduction” limits (for example, you can only get a limit on your state and local income tax). I'm so excited! Furthermore, I am on pace to get a full year of exemptions, and not see a penny increase in my taxable income! That's what's been killing us (for the past 7 years!)!! We've been trying for 4 years to save up for this, and now, for the first time, we are. As a small business owner, we've been paying 1,500/month (in addition to our mortgage) for our home (thanks to their subsidy!). So right away, we were wondering why we have to pay so much if taxes were going down.  The answers to both questions are simple: 1) because we were so scared about the taxes and how they would affect us when you factor in the mortgage (we are paying almost as much in mortgage payments as home sales have brought that's why we are paying more than our gross income, which is 15,000/year). 2) If we got to a certain point where we were just scraping by, or were trying to save for some sort of emergency like an insurance claim, we would have had to put away more than 60/month in cash. I am so excited; I didn't think I would have a chance at this amount!!  I'm so excited to get my tax bill next week! Furthermore, I've heard from the IRS that we'll have to wait until after February, if we have any income, but it's exciting because at this point, after two years of paying less than my gross income, I feel like it will be done with. This is the first (and first of many!) annual post about our amazing tax preparation, financial wellness, and lifestyle. This page is also my #1 favorite resource on our blog for tax information!  We've saved 1,000 already! Let's do 10,000.

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