We now have taken a first cut at our 2014 tax situation. We always like to get a head start on these, but this time, since we sold the house in California, there will likely be some significant differences that we would like to know about. Our first clue that there would be complications, was when we received IRS form 1099-S (sale of residence) which was included in the escrow paperwork.
The most tedious part of preparing the return is charitable donations. 501(c)(3) cash write offs are straightforward, but listing the hundreds of non-cash items we donated (furniture, appliances, clothing) from clearing out the old house and our normal re-usable discards was daunting this time. TurboTax has a utility that assists in valuation of items, but it is somewhat limited in the types of donated items it can evaluate. However, we managed to get most of the items entered into the tax program file.
We have our sneak peek at the 2014 tax situation and it appears that our goal of adjusting the withholding so we would owe a small amount to both state and federal is pretty close. When the year end paperwork (and not just estimates) starts to show up next month, we will have a better idea of whether or not we met our target.