We had quite the “to-do” list when we got back to Minnesota from our Winter Summerland adventures in Florida last month. We don’t usually keep a list, but we had an unusual number of important things to get done.
We got our bills paid (a few a bit late), helped our son move into the new townhouse, helped my father-in-law with estate documents, decluttered/organized a bunch of rooms, got the Christmas lights down, and pulled our income taxes together. (If it seems strange to take your Christmas lights down in April, you haven’t lived in MN).
All together, 45 items got checked off our list.
The income taxes – joyfully mailed in on my birthday – were a pleasant surprise. We didn’t get all of the deductions I hoped for, but did better on the bottom-line than I planned.
Last year our overall federal tax rate was 28%. That’s about as high as you can pay. With the tax planning I did with our accountant this past year, I hoped to get down to 10% this year. We actually got down to 7%! Fantastic.
That said, our 2021 tax scheme will only work once for us. I’m sure next year we will be back to whatever the maximum the Congress & President can stick us with. Hopefully continuing gridlock will keep them from any sort of tax increases.
How did your tax planning turn out for your 2021 returns?
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