Another tax season down and most likely many more to go. I filed about a week or two later than I would have liked this year, but life got in the way. It would be nice to not pay taxes, but that would require some extreme measures. I'm neither interested in living off the grid nor attempt to be an untouchable elite.
I sorta miss the simpler days as a college student when things were easier. All I ever had to deal with was a 1040. For those of you who are unfamiliar, that's a tax form in the US. It was easy to file my taxes within the first two weeks of February after I receive the W-2 forms.
Then, taxes got complicated as I dove into the stock market, precious metals, and whatnot. My worst experience was dealing with Schedule K-1. I learned very quick after that one year and liquidated anything that would produce one. Besides the annoyance that comes with keeping track of more forms, you prolong your agony. Many K-1's are not available until later in March.
I have never gone to an accountant before. In fact, I've used TurboTax for as long as I remember. Some claim that it's not as sharp as a specialized person, but I wouldn't know the difference. I may consider trying that one of those years to enlighten myself.
For average joes like me, it's good enough. I can import brokerage documents into the program. I can use tools like Bitcoin.tax to help me compile my crypto trades. I can even have an accountant through Turbo Tax to review my files.
Of course, as time goes on, my finances become more and more complex. This year, I decided to purchase their audit protection perk. I've been more adventurous this past year and I wanted to cover all my bases. In addition, I have been and will liquidate a fair amount of holdings this year to realize gains. So, I definitely will want to have that service by my side next year too. I don't want the IRS to spoil my party after I paid my dues to Uncle Sam.
The reality is, most of us cannot fight the tax man unless it's time for the system to collapse. So, some preemptive measures is always better than none.
The good news is, I should receive a decent amount of tax refund. I will definitely celebrate a little, put a portion into savings, and invest the rest. Is crypto involved? You bet it is.
