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Thank you so much for your kind answers. Our property taxes are $500 twice a year, the refund should cover that for a year at least. This is great news for us
Check with your tax assessor and tax collector. Some states have programs to reduce or freeze taxes based on age and income. I know where I live there are probably 50 different reasons you can get some help on taxes. My guess is most of the residents know of only one or two.
I do not like reverse mortgage but you might want to start studying them in case you need then in the future. I think to be safe you both should be over 65 when you take out the reverse mortgage.
I would stop the 160 federal deduction now. If you do have any Federal income taxes you can restart a small deduction. I do not think you will have any taxes that why I would stop now.
Check with your tax assessor and tax collector. Some states have programs to reduce or freeze taxes based on age and income. I know where I live there are probably 50 different reasons you can get some help on taxes. My guess is most of the residents know of only one or two.
I do not like reverse mortgage but you might want to start studying them in case you need then in the future. I think to be safe you both should be over 65 when you take out the reverse mortgage.
I would stop the 160 federal deduction now. If you do have any Federal income taxes you can restart a small deduction. I do not think you will have any taxes that why I would stop now.
Actually we did stop the federal deductions per suggestions from this group, might have been you. Now just trying to figure out if we owe state. My DH won't be 65 for 4 years.
As part of the IRA distribution, did you have any withholding taxes taken out ? Federal and/or State ? If you took Federal, but not State, that might explain the "refund vs owe" problem.
Went to Turbo Tax after Tax Act wouldn't let me go forward without signing up for a prepaid debit card. Turbo Tax worked perfect and showed me that I didn't owe state tax after all. Big different in how easy it was
Went to Turbo Tax after Tax Act wouldn't let me go forward without signing up for a prepaid debit card. Turbo Tax worked perfect and showed me that I didn't owe state tax after all. Big different in how easy it was
Awesome. I want commend you and DH. Pass our my thanks for his service. You both have done amazing. We hav used Turbo Tax for a long time and our tax situation is complicated. It just works better than anything else out there.
Glad it worked out for you. BTW, you can file your Ohio taxes on line and it's free (Ohio Department of Taxation > ohio_individual > individual > filefaster). But, let me also add, I find their form/site very confusing. I use Express1040, print off the state summary, then use the Ohio site to file my taxes. I would Express1040 to file my Ohio taxes but they charge $13, used to be $8. I use the printout from Express1040 to confirm my figures match the Ohio tax form.
Glad it worked out for you. BTW, you can file your Ohio taxes on line and it's free (Ohio Department of Taxation > ohio_individual > individual > filefaster). But, let me also add, I find their form/site very confusing. I use Express1040, print off the state summary, then use the Ohio site to file my taxes. I would Express1040 to file my Ohio taxes but they charge $13, used to be $8. I use the printout from Express1040 to confirm my figures match the Ohio tax form.
I noticed that my federal was accepted pretty much immediately but my state is still pending. It is zero refund and I guess that is why it was free to file. Do I need to keep checking on it? Any worries I should be aware of?
Quote:
Originally Posted by golfingduo
Awesome. I want commend you and DH. Pass our my thanks for his service. You both have done amazing. We hav used Turbo Tax for a long time and our tax situation is complicated. It just works better than anything else out there.
Thank you. It is amazing how one can live within their means if they work at it. A few times when things have gotten tight we have sold a few belongings to help. I have someone in my family who calls me the queen of cheap. She makes fun of me for always looking for coupons or deals. I can't see how that is a bad thing. To each their own.
You only have to be 62 to get a reverse mortgage. If you are on track to pay off the house in 2017, then, if you are going to get a reverse mortgage, don't start paying extra now, to pay it off early. You only have to have significant equity to get one, not 100%. You can start looking into it a few months before you turn 62.
It is better if both of you are 62 when you get the reverse mortgage. If it is only one of you on the mortgage, the one who is not on it may have to move when the other person passes.
You can get payments from the mortgage company until the equity is gone or you can opt for lower payments and get them until you are both gone. Keep in mind that you may not be leaving much, if any at all, to your heirs.
Also, don't forget that you can actually buy a house with a reverse mortgage. You don't have to stay where you are if you don't want to. If you cash in on the equity where you are now, you can buy a house somewhere else that could be worth a little less than half of what you can put down on it. For example, if you sell your paid off home for 200,000, you could take $100,000 and buy another house with a reverse mortgage worth almost as much, and have a lot of cash you can invest for more income.
You will have a lot of options in two years. It's never too early to explore them.
Call whomever is sending you this money and get that withholding removed from your IRA withdrawals - now. I NEVER have taxes withheld from any distributions - ever. Better you should calculate your taxes quarterly during the year - and, if need be, make estimated payments.
Doubtful you will owe anything anytime soon.
That's ok but some companies, or states, require withholding. I have a TSA and am required to have 27.75% withheld on every draw (20% Federal, 7.75% Maryland). I could exempt from Federal but MD requires it.
You only have to be 62 to get a reverse mortgage. If you are on track to pay off the house in 2017, then, if you are going to get a reverse mortgage, don't start paying extra now, to pay it off early. You only have to have significant equity to get one, not 100%. You can start looking into it a few months before you turn 62.
It is better if both of you are 62 when you get the reverse mortgage. If it is only one of you on the mortgage, the one who is not on it may have to move when the other person passes.
You can get payments from the mortgage company until the equity is gone or you can opt for lower payments and get them until you are both gone. Keep in mind that you may not be leaving much, if any at all, to your heirs.
Also, don't forget that you can actually buy a house with a reverse mortgage. You don't have to stay where you are if you don't want to. If you cash in on the equity where you are now, you can buy a house somewhere else that could be worth a little less than half of what you can put down on it. For example, if you sell your paid off home for 200,000, you could take $100,000 and buy another house with a reverse mortgage worth almost as much, and have a lot of cash you can invest for more income.
You will have a lot of options in two years. It's never too early to explore them.
Thanks but not really eligible to get a reverse mortgage for a while since we have a home equity line of credit we are paying on. We are paying the minimum right now but will start putting the same as our house payment on this when our house is paid off in 2018. It might be something to look into later. This house we live in would only sell for $100,000 and it would be hard to find one more handy
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