I love numbers.  I love to tinker with anything that has numbers.  That’s why I can’t wait to start my taxes.  It’s the most wonderful time of the year. 

Most years I would have started by now.  This year I’ve waited a little longer than usual.  Here are the top five reasons I haven’t started my taxes:

REASON #1:  I owe money.  Financially it is advantageous to defer the payment as long as possible.  The latest I can pay without running the risk of penalties or interest is April 15th - so that’s the day I pay. 

I don’t always wait until April 15th.  Sometimes I go to the post office on April 14th to beat the rush.

By the way, if you receive a tax refund you should adjust your withholding.  There is no reason to make an interest-free loan to the federal government.  Same with your state withholding.  Learning how withholding works is a wise money decision.

REASON #2:  I need to contribute the full amount to both my and my wife’s IRA.  I need to round up some money and move it between accounts.  That takes time.

I could file my taxes before I contribute the money.  You are allowed to file your taxes before making the IRA contribution.  As long as you make your IRA contribution by April 15th, then the IRS doesn’t complain. 

However, if you file your taxes and later decide not to contribute to your IRA, you will need to file an amended return.  Rather than risk an amended return in case I change my mind, I wait to file my return until I’ve done the IRA contribution.

REASON #3:  Last year I did my taxes in January.  Several days later I received a 1099 for a brokerage account that showed numbers different than what I expected.  I had to redo my return. 

Two weeks later I received an amended 1099 showing different numbers.  I had to re-redo my return. 

Even though I love doing my taxes, I wasn’t crazy about doing them three times in one year.  I decided from then on I would wait until March to do my taxes.

You may wonder why the broker was sending me amended 1099 statements after the January 31 deadline.  I found out later it wasn’t anything to do with the broker, but instead was a result of holding some foreign investments.  Foreign companies and funds don’t always follow IRS rules about reporting tax information on a timely basis. 

The last few years I received several amended statements, but I haven’t received any this year.

REASON #4:  I started this blog a few weeks ago.  It takes a tremendous amount of time.  Time I otherwise could spend doing my taxes. 

I think it’s safe to say I’m the only blogger in the world that wishes he could spend a little less time blogging in order to spend a little more time doing taxes.

REASON #5:  Doing my taxes is like a week in Hawaii.  The anticipation is wonderful.  The trip is wonderful.  But it’s a little disappointing after it’s over.  There’s nothing to look forward to until next time.

By waiting to do my taxes, I extend the excitement of the anticipation and defer the disappointment of the aftermath.

Conclusion

There are several reasons I have waited to do my taxes.  Deferral is the main reason.  I defer the payment of any tax as much and as often as I can. 

Deferral only makes sense if you invest the money in the meantime.  If you put the money in a checking account instead of investing it, then there would be very little benefit of deferral.

If you don’t like doing your taxes, then I hope for your sake you finish them quickly (or better yet you’re already done). 

But if you’re crazy like me and you love doing your taxes, I hope you haven’t started yet so you have the whole wonderful process to enjoy.  Have a great couple of weeks before April 15th!