Thursday, April 11, 2019

Tax 'Reprieve'

For only the second time in my life, I have had to accept an extension to the tax deadline. I have just learned that my latest change in tax preparation software was relatively easy to use because it was not all that comprehensive in the asking of its questions.

After anticipating only a 50% reduction in the Federal refund and tripling of the amount due to the State, my new Clergy Tax Service has told me it needs more time not only for this year's taxes but to re-file corrections for the last several years. There's a $20,000 pension deduction for NYS income taxes which my software did not know and did not deal with.

What was going to be a bad tax year has suddenly turned into one of the best in many years both in terms of dollars saved and much better accuracy. No State tax due this year ... hallelujah ... and getting back what I paid three years prior to that. I may owe a small amount to the Federal, but nothing substantial.

We used to get notified quarterly about tax changes to clergy returns. That stopped right about the time of the Conference merger in 2010 which is the year I first remember having to struggle to find answers to my questions. Lesson Learned: I wouldn't try to save money trying to repair my own vehicle; I shouldn't try to keep up with tax laws that tax accountants utilize as a complete occupation! Happy April 15th!

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