Tax Season

Yes....it's been a while since my last post. That's what employment does.

Tax season is drawing to a close. Most people would think that it should be past tense, as in - has drawn to a close. Not so, I found out. I was amazed at how many people called and showed up at the office on the 18th, 19th and 20th wanting to have there taxes done. I was asked at least five times, "When are taxes due?" The diligence and organizational ability of the American public continues to astound me.

Sigh...

Tax season was fun though.

I met a great range of people. They had in common getting their taxes done, but that was about it. With each new client there came a new story, a new set of issues, a new drama.

For everyone considering getting married or having children I recommend spending some time in a tax office. If there is strife to be had, you'll see it. Even if a child lives with one parent and hasn't seen the other in years, you can bet that both will try to claim the tax benefits. In fact, probably the grandmother, uncle and sister will try to claim the kid too.

Deductions seem to be another point of confusion.
Let me clear up a couple of things:

• No, you cannot write off the cost of gas (yes, I know its expensive...that's not the IRS's criteria).
  
• No, you cannot write off your apartment rent.
  
• No, you cannot deduct what you spent on groceries or even your kid's new slippahs.
  
• No, only the interest portion of your mortgage is deductible. It doesn't matter that you spend too much on the house.
  
• No, you cannot deduct child support (refer to marriage/child drama above).
  
• No, you can't deduct the cost of that new truck you just bought....really.
• No, you cannot deduct something that your employer reimbursed you for.
  

Self-employed people proved to be special challenges.
Some basic guidelines for anyone thinking about going it alone:

• Writing things down helps. Writing things down before you get to the tax office is even better.
• A plastic grocery bag does not qualify as a filing system.
  
• If you can't tell me a number (revenue, expense, etc) I can't put it into your return.
• I don't read minds.
• Having zero expenses every year might raise a red flag.
• Having zero revenue every year might raise a red flag.

Starting next week I'm back to hiding out in the rain forest.
More soon...