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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Tax time is now concluded.
Our first married filing jointly return. How thrilling!
For the first time since ER'ing, I had to pay taxes, but at least the wifes withholding covered the damage and we're getting a little bit back.
Some key learnings:
- It does not really matter if you have your investments spread over hell and earth or at one place. This is my first year where everything was in one place (vanguard). I expected almost push-button ease. Not to be had.
- Do not, I repeat, do not use the vanguard short term bond fund as your faux money-market account. Granted I had a lot of activity in mine because I had dividends paid out to it from all my other funds and then drained it for my regular spending needs. I also used it just like a MM account at a brokerage...putting new money into it and funding investments from there. Upon review of my full transaction loads, almost every single sell generated a small and nearly insignificant loss that in aggregate ate up all the interest I was paid. Further, since about 70% of the sell transactions generated a small loss, they were all subject to the wash sale rule and I had to calculate which 'bucket' the shares came from and how many shares had then been purchased within the 60 day window of that sale. Ay Carumba! Surprisingly, although I have vanguards download and quickens sideslip into turbotax, the program couldnt figure this out on its own. All the numbers were there, readily available. Apparently Intuit spent so much time figuring out how to shoehorn offers for $19.95 for Its Deductible! and other various and sundry extras that they forgot to build in useful functionality to the program.
- When you've done your investment downloads and are mired in doing extensive wash-sale calculations, do not, I repeat: do not decide that it might be a good idea to do an import from quicken to see if that provides any of this info. That created duplicate transactions for all my 1099-div and 1099-B entries. I then had to figure out which ones were good and which werent by printing out the schedule D and looking at each and every one, then selectively deleting the bad ones.
- By the way, a quicken to turbotax import still fills out your schedule D incorrectly. It does not show the fund name and number of shares transacted, but simply shows the fund name. The import from vanguard does work correctly.
- Using the vanguard turbotax-on-the-web freebie to transfer the results produced no better or worse experience than using standalone turbotax. So if you're a voyager or flagship account holder, using the free online tool appears to cause no harm or provide no benefit vs paying for the product. I still havent used the freebie service available this year on the IRS web site that supposedly allows you to use this tax s/w free of charge if you e-file. I think you still have to pay for the state tax s/w. Since I got turbotax for federal and state along with quicken for free after rebates, I didnt bother with that.
Beer tastes good!
Our first married filing jointly return. How thrilling!
For the first time since ER'ing, I had to pay taxes, but at least the wifes withholding covered the damage and we're getting a little bit back.
Some key learnings:
- It does not really matter if you have your investments spread over hell and earth or at one place. This is my first year where everything was in one place (vanguard). I expected almost push-button ease. Not to be had.
- Do not, I repeat, do not use the vanguard short term bond fund as your faux money-market account. Granted I had a lot of activity in mine because I had dividends paid out to it from all my other funds and then drained it for my regular spending needs. I also used it just like a MM account at a brokerage...putting new money into it and funding investments from there. Upon review of my full transaction loads, almost every single sell generated a small and nearly insignificant loss that in aggregate ate up all the interest I was paid. Further, since about 70% of the sell transactions generated a small loss, they were all subject to the wash sale rule and I had to calculate which 'bucket' the shares came from and how many shares had then been purchased within the 60 day window of that sale. Ay Carumba! Surprisingly, although I have vanguards download and quickens sideslip into turbotax, the program couldnt figure this out on its own. All the numbers were there, readily available. Apparently Intuit spent so much time figuring out how to shoehorn offers for $19.95 for Its Deductible! and other various and sundry extras that they forgot to build in useful functionality to the program.
- When you've done your investment downloads and are mired in doing extensive wash-sale calculations, do not, I repeat: do not decide that it might be a good idea to do an import from quicken to see if that provides any of this info. That created duplicate transactions for all my 1099-div and 1099-B entries. I then had to figure out which ones were good and which werent by printing out the schedule D and looking at each and every one, then selectively deleting the bad ones.
- By the way, a quicken to turbotax import still fills out your schedule D incorrectly. It does not show the fund name and number of shares transacted, but simply shows the fund name. The import from vanguard does work correctly.
- Using the vanguard turbotax-on-the-web freebie to transfer the results produced no better or worse experience than using standalone turbotax. So if you're a voyager or flagship account holder, using the free online tool appears to cause no harm or provide no benefit vs paying for the product. I still havent used the freebie service available this year on the IRS web site that supposedly allows you to use this tax s/w free of charge if you e-file. I think you still have to pay for the state tax s/w. Since I got turbotax for federal and state along with quicken for free after rebates, I didnt bother with that.
Beer tastes good!