Howdy, Gang. It’s been a while since I have posted, but I wanted you to know that I’m still here. So, yesterday (April 18) was the deadline for filing federal income tax in the United States. How did you make out? From my perspective, it was painful.
I actually filed my taxes weeks ago, but I paid them on the fifteenth, because I forgot that the deadline had moved a few days to accommodate the IRS’ observation of Emancipation Day in Washington, DC. At any rate, the government took a HUGE CHUNK out of my bank account. It’s my own fault really.
After Cindy passed away, I took a distribution from her 401k to make sure that things would keep running and I could cover expenses while I waited for the life insurance to settle. If you have never had to file a life insurance claim, let me assure you that insurance companies can move VERY SLOWLY when settling claims. I mean they can be really, really slow. Think glacier slow. That’s what happened in this case. I don’t know what they were waiting for. Were they afraid that she would come back? Trust me, if Cindy had come back to me, I would have gladly and cheerfully told them to keep the money!
Oops. I kind of got off on a rant there. Sorry.
When the investment company sent me the distribution, they withheld 20% for federal tax, but nothing for Arizona state tax. I knew that wasn’t going to be sufficient, but I wasn’t sure just how far in the hole I was. So, trying to be prepared, I set aside what I thought would be the difference that I would owe. Fortunately for me, the real number was roughly half what I had expected. That’s good news, but it was still five figures and that’s a lot of money no matter how you slice it.
Fortunately, it’s done and won’t be taxed again. Now I can get on with life. Having a little money in the bank is nice, but it’s no replacement for the love of my life. I can tell you that.
So, how did you make out on tax day?