TAXES 2007

Sundays are good days for eating pancakes, wearing pajamas, and filing your taxes. Today I have done all three of these things, and I am feeling mighty productive. 

I was especially excited about filing my taxes (yes, excited is the appropriate term) because I was hoping to receive a major federal and/or state refund. This did not happen, as the evil government insists on relentlessly taking all of my money. I should have known this, but I guess I am still a little tax-naive. Al least my taxes were not as bad as they could have been, due to my hefty 401K contributions. 

This is a list of things I have learned this year (from filing my taxes with TurboTax)

- Donating to charity, even if the charity claims that the donations are tax-refundable, does not mean you may deduct said donations from the amount you owe the government. Your itemized deductions (everything you give to charity) must be larger than your "standardized deductions" in order for your donations to positively impact your taxes.

- Turbo Tax asked me if I have received income from the Ottoman Empire, to determine -somehow- if I would be eligible for a tax credit. This seemingly ridiculous question made me realize that Turbo Tax is definitely worth the money.

- Make 401K contributions to the max!!!!!!!!!!! Everything you contribute will lower your taxable income for the present year, and help raise funds for when you retire. It is a win-win situation for you.

- Being a student is very, very good for your taxes. In the past, I had always taken my student status for granted. I could not claim that I was a student in 2007. [sad face]