In typical fashion, I’m going for a buzzer-beater. I like filing on the last possible day, since I almost always owe at the end of the year.
Here’s what’s on my mind as I look at my 1040:
- AGI is a painful reminder of spending – The year 2012 was full of lifestyle creep. While I had a few less than ordinary expenses that I hadn’t expected, my year-end AGI serves as a reminder that lifestyle creep needs to be kept to a minimum. I spent pretty heavily last summer, and road trips add up. The year 2013 will be no better for big spending. I have to pay for basically 1.5 years of school this year.
- I’m doing okay for a college kid – The economy isn’t as strong as everyone would like for it to be. I need to be more thankful for what I have. I’m not starving, not broke, and I don’t owe a dime to Sally Mae or any of her cohorts. That’s worth something. In general, 20-somethings are in a world of hurt, with student loan delinquencies now over 35% for people under 30 years old. I need to be more aware of the comforts and conveniences I have because it’s never been harder for people my age. Whether its from some supreme being or just dumb luck, I’ll take it. What I cannot do is take it for granted.
A special thanks goes out to Dan at DarwinsMoney and ETFBase, Larry at InvestorJunkie, Corey at 20sFinances, and Robert at TheCollegeInvestor for allowing me the opportunity to write about the markets and finance on their sites. Also, a big thanks to the clients of my non-blogging endeavors.
- I had dividend income? – I generally stay away from dividend-paying stocks. I’m not a fan of dividends, seeing as I think they are more likely to lead to fairly-priced securities than underpriced securities. I had dividend income for the first time that I can remember in a long time. Weird. I think the bulk of it was from a one-time special dividends at year-end 2012.
- W-2 income would be nice – W-2 income is worth the world when you don’t have it. After graduation I look forward to any amount of W-2 income because it’s so undeniably important for buying a home or making big investment moves, like purchasing investment real estate. Ideally, I’d have both W-2 and Schedule C income. A financially-motivated friend of mine just secured a steady job. We have similar goals and financial motivations. I can see us working together on some good real estate purchases in the future.
What about you? Did you glean any new insight from your tax documents?