Violet Sky

Happy tax day to all seven of us who celebrate! My condolences to the rest of America.

I’m one of those weirdos who really enjoys doing taxes. I’ve been doing our family’s taxes myself for the last 17 years or so, having started in the slimy grips of TurboTax but graduating more recently to FreeTaxUSA (highly recommend!). A lot of our taxes have been simple, but as time has gone on, they’ve gotten more complex, and it’s always a fun puzzle to solve each year. I also do the taxes of friends and family – I really do like it that much!

This year, we owed the IRS $2,358 in taxes, $2,098 of which we had planned for and saved out of my husband’s side gig last year. It’s always nice to get the number pretty close to right in your planning. Our total taxes paid were $49,173, for an effective tax rate of approximately 16.5%. People complain a lot about taxes in the US, but paying less than 20% on $300,000 in income is not a bad deal, in my opinion.

Our income has climbed over the years, but in 2024, it actually dipped a little. The tech market has been struggling, reducing competition between companies for candidates, and I ran out of my new hire stock grant in February of 2024. This grant was much larger than any subsequent grants I received, so I wouldn’t be surprised if my income continues to stagnate over the next year as well. That being said, it’s hard to feel too sorry for myself, as I’m still making far more money than I ever imagined I would, and am grateful for everything it’s afforded thus far. 2024 was also the last year that we get the full $2,000 child tax credit for our youngest child (he turns 16 next month!), so I am curious how 2025’s taxes will end up. See you next year, FTUSA!