We finished up the 2006 tax return this past week. After reviewing the return and double-checking all the numbers, we went ahead and e-filed the return. We will be getting a tax refund and have requested that the refund be directly deposited into our account. In the past it has not taken too long to receive the refund, so I will post back how long it took this year. I always feel better when the taxes are done and filed. It feels good to check that off the “things to do list”.

Here is a summary of the steps we took to prepare our return.

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We’re in the final stages of preparing our taxes for last year.  We prepare our own taxes and have used Turbo Tax for years now.  Usually this is about a week long process from start to finish, as we take small steps daily towards getting it finished.  Being organized makes the process go quickly.  We have a folder where all tax information has been kept and collected as it has been received.  It is organized by the order which these items will be entered into Turbo Tax, which is first the W-2,  followed by interest statements, 1099s, mortgage interest statements, and receipts for charitable giving.  This makes it really easy to enter the info into Turbo Tax because we don’t have to hunt around for the forms/info.  My husband purchased Turbo Tax one week ago (at Sam’s Club which had the best price for it).   Here is a step-by-step process of how we have prepared our taxes. 

1.  Purchased Turbo Tax and installed it on computer. 

2.  Transferred information from last year’s Turbo Tax progam through the import feature. 

3.  Entered 2006 information including W-2, interest income, dividend income, and 1099 income. 

4.  Developed a spreadsheet for the itemized expenses.  After this was completed, deductions (mortage interest, property taxes, sales taxes, charitable giving,) were entered into Turbo Tax. 

5.  Tax credits were entered according to Turbo Tax.

6.  Final review through Turbo Tax (this is an entirely automated process). 

We choose E-File for submitting our return.  However, we print a copy of the return out and then I review it.  I check all the numbers for accuracy and ensure we have the required backup documentation.  After we have verified the return, we then utilize the Turbo Tax program to make the E-File. 

We will be receiving a tax refund this year and are utilizing the direct deposit feature.  Our file containing all the supporting documentation will be stored for future use. 

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We just received the premium notice for our auto insurance policy.  We read all the line item amounts which detail the coverages and limits and the corresponding price.  Pretty much the same prices as last year for the liability coverage, no fault, comprehensive, collision and uninsured motor vehicle premiums.  However, we found this little entry underneath the premium total:

Plus FHCF Assessment - $3.49

In the notes section of the bill, it states that “your policy has increased 1% due to the Florida Hurricane Catastrophe Fund Assessment.”

After a little bit of research, come to find out that in June 2006 the Florida State Board of Regulation (who oversees the FHCF) directed the Office of Insurance Regulation to levy an emergency assessment on all property and casualty business in the State of Florida.  This assessment is applied to all policies issued or renewed after January 1, 2007.   This assessment was deemed necessary because the Florida Hurricane Catastrophe Fund was depleted of nearly all of the $6 billion in reserves it had built up from 1993 following the 2004 and 2005 hurricane seasons. 

If you’ve been keeping up with my posts about the homeowner insurance problem, then you’ll know that we are also paying an assessment to subsidize Citizen’s Property Insurance (the state run insurer of last resort).  Looks like there is going to be a lot more of these assessments coming, especially after the bill that Governor Crist signed last week.

 

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