Year-end cash considerations

Yesterday, I forgot to invoice Yahoo for the last month’s worth of stories, and my stupid oversight may save me a little money next year.

That’s because the odds of payment for November’s work at Yahoo Finance arriving by Dec. 31 just got two days’ worse. And if I don’t get paid by then, I don’t owe taxes on the money until 2017.

2016-in-changeThe downside of this scenario is that my 2016 income, already assured to fall below 2015’s because I wrote less than usual in early summer, will drop even more. That potential embarrassment bugs me, but apparently not enough that I remembered to get the payment machinery in gear by Friday.

Deferring income isn’t exactly an advanced financial hack, but it is something I couldn’t do when I worked on a salary.

Tax calculations should also drive me to go on a moderate hardware-spending binge this month. My laptop and my desktop are both ancient, and replacing either now would put a nice big expense on my Schedule C.

Alas, Apple seems uninterested in shipping a new laptop in my price range, or a new desktop at any price. The Windows universe offers a few enticing options, but on closer inspection I realize that the laptops I like all omit at least one feature I’d appreciate.

More important, CES is now only a month away. And I can’t possibly make any big electronics purchases before using that event to see what the gadget industry has in store for this year–its no accident that electronics rarely land on my Christmas list.

That leaves me another way to lower my tax burden: a late-December spree of charitable donations. You may have read a lot on Twitter about #GivingTuesday this week, but for me that day comes on the last Tuesday of this month–when I know the donation will count for my 2016 taxes but won’t come due on on my credit-card bill until sometime in February. Please do the same if you’re financially able.

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Five years of not having a real job

Monday marked five years since I’d last been on the clock for an employer. The continued absence of a salary still doesn’t bother me.

Five years of 1099sA lot has changed since the day that started with my failing to sleep in, then involved the hilarity of filing our taxes and ended with a few retellings of my what-happened story at an Online News Association meetup.

My top sources of income have changed almost every year, so I’ve gotten used to answering such vaguely existential questions as “where are you at?”

I’m no longer incompetent at accounting and have even gone back to doing our taxes, Schedule C and all.

I’ve traveled to places I might have never seen on the Post’s dime. I did enjoy marking the fifth anniversary of my independence in Hong Kong, although I can’t say the same about spending the preceding 16 hours in seat 21K. One contributing factor to all that travel: Sufficient practice at public speaking has begun to pay off with more invitations to moderate a panel or give a talk, and accepting them doesn’t require multiple layers of newsroom approval.

I’ve been able to say what I think on Twitter and Facebook without worrying about running afoul of some newsroom social-media policy intended to fool readers into thinking we have no opinions about what we cover.

And I don’t know if I can call myself a hustler, but I’m definitely a more aggressive capitalist than I was in 2011.

In an alternate universe flipped to a different page in this Choose Your Own Occupational Adventure book, I might have landed another full-time job. I half-expected that to happen within a few months of leaving the Post, but instead a variety of interesting freelance opportunities appeared and I chose to follow them. (Lesson learned that most people unfortunately can’t apply: It’s not that hard to start as a freelancer if you first hold down a column for a major newspaper for over a decade.)

I may yet regret going this route–yes, I have been following the news about Yahoo. But every new round of newsroom layoffs and every job-destroying pivot at a new-media startup reinforces my sense that having a full-time employer provides little more security than cultivating a good set of regular clients that can’t constitute a single point of income failure.

Check back in another five years, and I should be able to report if I was right about that.

Post-travel to-dos

Cards and card

I’m through the worst of what I’m not-so-fondly calling Conference Month, and all of this travel is reminding me of the tasks that await each time I come home and finish unpacking.

Let’s see:

  • Do laundry.
  • Catch up on other household chores: sweep the floors, do the dishes, bake bread, reaffirm my earlier decision that the late-summer lawn is a lost cause.
  • Go over my e-mail to see which messages I should have answered three to five days ago.
  • Tag and categorize business expenses in Mint, then verify that I didn’t forget to record any cash transactions in the Google Docs spreadsheet I use for that purpose.
  • Send LinkedIn invitations to people I met on the trip, assuming their profiles show signs of recent life. (Go ahead, call me a tool now.)
  • Throw the latest set of press-kit USB flash drives onto the pile.
  • Scan business cards into Evernote.
  • Download, edit, geotag and caption photos, then post them to Flickr (for public viewing) or Facebook (for friends).
  • Make sure I got the proper frequent-flyer credit for the last round of flights.
  • There’s probably some other chore that should be on this list but that I will only remember when I’m on my way to National or Dulles.

As I write this, there’s a stack of business cards on my desk and several dozen pictures in iPhoto that have not been edited, geotagged, captioned or shared. And I only have five days before my next work trip, the Online News Association’s conference in Los Angeles, so you can imagine how well this is going.

Conference organizers, maybe you could find other months to host your events?

 

I survived doing our own taxes (I think)

Over the last few weeks, I did the one thing I was sure I’d never do after leaving the Post: prepare my own taxes instead of paying a tax professional to do the work.

I’d outsourced my tax prep over the last three years with generally satisfactory results. But this time around my tax guy had raised his rates while my own financial situation had not gotten more complex; I felt like I had finally disciplined my once moronic, then merely slovenly accounting; it seemed wrong to go four years without even looking at a category of software millions of Americans do battle with every spring.

1099s and TurboTaxAnd so I renewed my acquaintance with Intuit’s TurboTax for the first time since 2011–not as a reviewer, but as a paying customer. It went better than I’d feared.

The biggest upgrade from my earlier agonies was effective record-keeping: I’d entered every cash expense last year into a Google spreadsheet on my phone within hours or, at worst, days, then imported business credit-card transactions into the same sheet every quarter. Between that and being able to consult last year’s return for guidance on what should go where, I had the outlines of my Schedule C knocked out in shockingly little time.

That’s a great reason to go to a tax pro in the first place: If you don’t know to do this stuff, you need somebody who can coach you. The results don’t just help at tax time, but throughout the year.

TurboTax’s ability to import tax forms for all of our mutual funds–something I’ve complimented in earlier reviews–was a great time-saver. And seeing each investment firm’s numbers flow into our return meant I got a direct look at the tax hit inflicted by some actively-traded mutual funds versus index funds. Ouch.

I was relieved to see that the stupid date-validation bugs I’d complained about in 2011 were gone–well, in most of the app.

Did I play this unnecessary game of tax-code-optimization as well as I could? I believe I did, but I won’t know for sure until after we actually file. Yes, although the 1040 and our assorted alphabetical schedules are done, I opted to file an extension. I will be dropping a sizable chunk of money into my SEP IRA to chisel down our tax bill, and I’d rather not completely clean out my account in the process.

I also did our Virginia taxes in TurboTax. Then I deleted that return after writing down the total it had calculated and the two numbers I’d need to put down on my state return. Intuit may have convinced a gullible General Assembly to scrap the state’s free iFile site in 2010, but that doesn’t mean I need to reward its successful regulatory capture with my own business when state taxes aren’t that hard and I can always file on paper.

 

 

All of my aging gadgets

As I’ve been plugging away at my taxes this year, one thing’s become blindingly clear: I’m not doing my share to prop up the electronics industry. My Schedule C will show only one gadget purchase for all of 2014, a $35 Google Chromecast.

Old laptop and phoneEvery other device I use for work is older, sometimes a lot older. I have my reasons for not upgrading, and some of them may even be valid… while others probably just testify to my own persnicketiness.

The oldest one of the bunch is my late-2009 iMac. I really should replace it–trying to edit a RAW image file taken with a friend’s camera made it painfully apparent how its processor has aged.

But buying a new iMac or Mac mini would require me to get an external optical drive, as if it’s 1997 all over again. (Doing without is not an option: Have you seen the lifespan of a DVD in the hands of a toddler?) One thing’s for sure: Whenever I do purchase a new Mac, there’s almost no chance I’ll pay Apple’s elevated price for an external DVD burner.

My 2011 ThinkPad X120E has not held its value nearly as well–the AMD processor inside was never that fast to begin with, and these days I only run it to test things in Windows 8. What I should do is replace it with a convertible laptop like one of Lenovo’s Yoga series–that’s a kind of device I can’t buy from Apple at any price. Maybe once Windows 10 ships?

The 2012 MacBook Air I’m typing this on shows its age on the outside–I’ve let this laptop pick up so many scuff marks that it’s unclear whether I even deserve a MacBook. But while its battery life has faded a little bit, it remains a great travel companion overall. I suspect I’ll wait to upgrade this one until I can get a new model with that charges via USB-C.

The upgrade calculus is simplest with my first-generation iPad mini. When I can buy a replacement that has not just the Touch ID sensor of the latest iPad mini but the better camera of the current full-sized iPad (or something close to it) and, ideally, a default storage allocation bigger than 16 gigabytes–boom, I’ll be throwing down my credit card.

On the other hand, I’m seriously anxious about how I’m going to replace my Nexus 4. This phone has aged remarkably well, not least since Android 5.0 Lollipop seems to have stretched out its battery life (I’ll write more on that separately). And I’ve somehow only dropped it onto an unyielding surface once, with the damage confined to a small crack on the back that I fixed in place with a bead of Krazy Glue.

But the Nexus 4’s camera remains mediocre in most situations, and the phone doesn’t have enough storage. Unfortunately, I can’t replace it with a newer Nexus model–the Nexus 6 is almost offensively enormous if you value one-handed use. So are most of the other high-end Android phones. If I shattered the screen on my generally-beloved phone tomorrow, I guess I’d buy the second-generation Moto X… which itself no longer ranks as new.

Finally, there’s my Canon 330 HS camera. I bought that bargain-priced model because the Wirecutter liked it at the time–and because the larger-sensor point-and-shoot models I initially coveted all required trade-offs. As far as I know, that’s still the case with the two leading candidates: Sony’s pricey RX100, now in its third generation, still can’t geotag photos from Sony’s smartphone app, and Canon’s S120 and newer G7X can’t take panoramic photos.

Now that I’ve described my intentional technological backwardness at length, I’m sure some of you would like to explain why I’m mistaken or which new gadgets I should be considering instead of the potential upgrades I listed above. Please have at it in the comments.