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Home > Taxes - ugh!

Taxes - ugh!

February 18th, 2014 at 12:43 am

I'd forgotten about my summer school money - got the form for that this last week. So I decided that today was the day I'd finish up my taxes. I started out in Turbo Tax, but when it got to where it said I'd need to upgrade to Premium to be able to get the form for capital gains (sold some stock) I was like forget it! So I went over to TaxAct - $17 for Federal and State. Somehow I assumed (erroneously of course)that this was the *total* cost to file.

I get through everything (end up owing NM $14, and getting a refund of $380 from Feds) and am on the next to last screen before filing. Then up comes the fees page. $17 for the state and federal, and then a $17.95 charge from Republic Bank!!! Say what? Where did that come from? The best I could tell is that the fee came from the fact that I was paying my NM fee electronically, or it could've been that I paid for the Taxact fees out of my refund. (Actually, now that I think about it, I think that is the case. Too late now to change that.)

At any rate, it still cost less than it would've with TurboTax. Ugh and double ugh!

So, less fees and tax owed to NM (first time I think I've ever actually OWED in a long time) I have approximately $325 coming my way. Not a lot, but considering that I upped my deductions this year (thereby receiving more in each paycheck) and actually made a little bit more than last year (summer school) - it's not too bad.

The refund money will be going directly to my NE-MOVE/TRAVEL fund. Smile

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I own this one stock that I bought into at around $27-28, which this past week as at =/- $200. The majority of what I own in it was inherited - and I promised my brother that I wouldn't sell any of it for at least 5 years. I also have some of that stock that I purchased after rolling over a Roth 401k from my gas and oil company job into a Brokerage IRA. So, that also can't be touched. However, I have 27 shares that I purchased in a taxable account which is from my own personal money. (Actually, I sold enough shares in it earlier this year that recouped my initial investment, plus a bit more.) So anyway, I am looking at the future and worried/anxious about how long it'll take me to get a job when I get to NE. I see I have approximately $5500 that I could have access to right now, which would nearly double my reserves.

I'm tempted to sell it and have the assured amount in my pocket. I'd put it away in my no touch account (unless job isn't found by July.) So it wouldn't just be spent willy nilly. But my argument with myself on this is, what if I DO find a job and end up not needing this, and the stock continues to rise? Wouldn't I kick myself for selling it needlessly? Not to mention that if I get a teaching/librarian job that pays non mission school wages, then I'd be bumped into a category where I might have to pay cap gains taxes.

What would you do? Say you were moving to a new state without a job lined up. You have enough in reserves + June pay to last til maybe September or October without a job (if you're *very* careful.) You have approximately $5500 in stock which you could sell, which would give you another 3-4 months of leeway -- if you sell it now. Or, you could keep that stock and wait and see how the job situation works out - then if it's not good, you can sell some then. Of course you aren't assured of how much it might be worth at that point - more or less.

10 Responses to “Taxes - ugh!”

  1. creditcardfree Says:
    1392685808

    Darn about those fees! I don't know that I would sell the stock yet...I'd wait, since there is quite a bit of time before you would need it. But also remember, that it doesn't have to be all or nothing. You could sell part of the stock now and wait on the rest if you really need it.

    FYI...my sister said if you apply at LPS you won't be able to see the open job positions until you apply. She did said media specialist potions are rare, but not unheard of. You likely know this, but it came up in a recent conversation. Are you looking at openings for grade level teachers, too?

  2. Another Reader Says:
    1392686453

    Tesla is a "story stock." At some point it will likely crash, because the business earnings won't justify the price and people will figure out the stock is overpriced. In your shoes, I would figure out the return on your investment, sell, and pat myself on the back for having made and KEPT that great return. And I would sell most or all of it, including what's in the IRA. Your retirement should not be tied to a single high flier. It should be broadly invested across a range of asset classes.

  3. FrugalTexan75 Says:
    1392688882

    CCF - Thanks for your suggestion. I have thought about maybe just selling part of it and keeping the rest - maybe sell 13 and keep 14? That would give me about 6 weeks cushion.

    I didn't know that about the LPS - that you don't see open positions until you apply. I've just been looking on various teacher job websites. I really don't want to go back into the regular classroom. My last year in a regular classroom really soured me on it and pretty solidly wrecked my confidence - not the kids, but other elements I had to deal with. I think I'd almost rather go back to copying for hours on end than deal with some of the same things again ...

    Another Reader,
    Smile I keep hearing that, but then it keeps going up. My bf asked me if I should be happy with the return I've gotten so far on it and get out. My uncle (who's talked 99% of our family into heavily investing in this) thinks this is just the beginning. I don't have all of my retirement money invested in it - I have a target fund Roth and a 403(b) with about an equal amount of what I have invested in the stock. I have said if it falls to $100/share then I'd probably get the heck out of Dodge - promises or not. At $100/share, it still would be a heck of a lot more money for my retirement that I'd have than what I could manage on my own.

    It's difficult enough for me to let go of the 27 stock I actually purchased with my own money/non-retirement monies ... to let go of a lot more than 27 shares when who knows where it'll go?? If I only had a crystal ball ... Smile

  4. creditcardfree Says:
    1392690069

    Yes, there is drama in teaching! Kids, administration, teachers and parents. Gallup is a big employer there, the hire based on your personality. Probably not explaining that quite right, but you might look at them to see if it would be a good back up or fill in employer.

  5. FrugalTexan75 Says:
    1392690719

    Gallup? Is that a name of a company?

  6. kashi Says:
    1392691776

    I think I'd wait, or just sell some and hang on to the rest. 3-4 months is a decent time frame and you are very resourceful!

  7. FrugalTexan75 Says:
    1392691789

    Nevermind, I found it. Interesting - I will have to look into this more. Thanks for the heads up!

  8. FrugalTexan75 Says:
    1392691824

    Thanks Kashi Smile

  9. snafu Says:
    1392698039

    Please don't get anxious about finding a position in another state until after the end of March when most teachers relinquish current positions. The school boards and private schools will need time to assess how they'll manage staff changes. Will you seek to teach summer school, on-line programs, tutoring, or work on any of the home schooling support programs? Those kids are more motivated than most. What companies would likely hire 'trainers' for example?

    It's likely the entire stock market will roller coaster up and down until the November, mid term elections. Unless the reasons you initially bought the stock have changed, it doesn't make sense to sell stock that has momentum. If you're worried about a significant drop, add a 'stop loss' so that an automatic 'sell' order occurs of the stock drops to a specific amount.

    It makes more sense to reduce non essential spending, sell items that are difficult /expensive to move and increase your short term savings moving fund.

  10. Looking Forward Says:
    1392699902

    Next year try FreeTaxUSA.c o m. CCF and I both use it and it cost under $10 total for everything. Smile
    As far as your stock goes you should do what feels right to you. Maybe selling a few, a lot or none. I say do what feels right to you. Smile

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