Have you ever seen a garden that’s identical to another? Probably not, yet most people still think that they should get the same tax refund that their neighbor, co-worker or friend gets. It is easier to duplicate a neighbor’s garden than it is a tax return.
Like perennials, flowers that return year after year, there are certain things on tax returns that may come back year after year. Generally a person’s name doesn’t change unless they marry or divorce, if they keep the same job from year after year, their employer doesn’t change, or if they purchased a house and still have it, they may still deduct mortgage insurance on a schedule A and property taxes year after year. So there are a few perennials, but a tax return is actually full of annuals.
Annuals are the flowers like pansies and petunias are planted yearly to fill out gardens and add color. Most things on a tax return change yearly. Even if the employer is the same, the amount made is generally different. This alone can affect the amount paid in taxes. If a person, marries, divorces, or has a child, that changes their filing status. If a person goes to school, or sends a child to school, that can be worth a credit or deduction. If a person takes money out or puts money into an IRA that can make an impact on their tax liability. If a person starts or stops a business, rents or stops renting a property, or sells any stock, their tax situation has just reached the level of complex. What a beautiful garden!
The possibilities in gardening and tax returns are endless. And just like snowflakes, no two are exactly alike.
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