When I wrote for The Billfold, I shared “everything I paid in taxes” posts—and since I don’t see any reason not to continue doing so, here’s a summary of my earnings and taxes for 2018:
- Business income minus loss: $67,700
- Total income including interest and dividends: $67,884
- HSA deduction: $3,450
- Deductible part of self-employed tax: $4,783
- SEP IRA deduction: $12,583
- Traditional IRA deduction: $5,500
- Self-employed health insurance deduction: $3,243
- Adjusted gross income: $38,325
- Standard deduction: $12,000
- Qualified business income deduction: $5,253
- Taxable income: $21,072
- Self-employment tax: $9,566
- Total federal tax: $11,897
- Total Iowa state tax: $1,724
I ended up underpaying my federal tax by $454 (which meant my estimated tax payments were really really close) and overpaying my Iowa tax by $1,416 (which meant that my estimated state tax payments were way off).
I was able to keep my health insurance subsidy for 2018, probably because I made the maximum HSA, IRA, and SEP IRA contributions and got my AGI down to a subsidizable level. I plan to do the same thing this year; I’ve already claimed the health insurance subsidy and will max out my deductible account contributions to keep it—why pay extra health insurance premium money when you can stash those dollars in a retirement account, after all?
My Iowa tax refund is going to pay 2019’s estimated taxes, and I’ve already made my first federal estimated tax payment for 2019, in the amount of $2,820.
Soooooo… that’s how I did this year, tax-wise.
How about you?