Trampoline Park, Birthday and February 2023 Expenses

It was a busy, short month of February. We went on some play date in a trampoline playground. It’s basically one giant place for kids to jump around. It was packed and a bit intimidating for our kids. We also had a snow day during valentines day and it has been colder than usual here in the Pacific Northwest. I’m ready for Spring, but Winter never seems to end.

AHP also turned 3 this February. He was so excited for his birthday! He had school on the actual day and we brought mini cupcakes for the class. He also had a family celebration for the weekend and even had 2 cakes!

Hi! I’m 3!

February was an expensive short month. In total we spent, $4,294.9.

Food & Dining$738.33
Bills & Utilities$265.52
Business Services$249.79
Health & Fitness$230.75
Auto & Transport$106.37

Travel – $2,112.4

We spent $1,996 for our upcoming 7 nights Alaskan Cruise this May. It will be our first ever cruise and I’m excited. Even the kids are excited. The cruise will tour Glacier Bay National Park. National Park Rangers will board the ship to give us a “tour” of the glacier. I read really good things about it. Since the tour will go to Canada, we decided to get passports for the kids. We paid $94 to the county for processing and kids passport photos. The actual application fees were cashed in March. I also paid $22.4 for 4 one way ticket to Florida this December during the winter break. I’m still unsure if the trip will happen, but I found a non-stop tickets to FLL, using Ultimate Rewards on Virgin Atlantic (via Delta). The ticket is refundable, so I have some time to plan.

Food and Dining – $738.33

Well, I thought this would be lower, given that we were using our Visa Gift Card to shop at Winco for groceries. We spent $585.88 on groceries. We also ate out twice and spent $107.45 on restaurants. I also spent $45 on Starbucks. Yes, I’m spending money on lattes!

Pets – $410.03

We took our furbaby to the vet again for some skin issues. It is getting a bit expensive but she is also getting old and these expenses are probably normal for her age. We’re hoping that it clears up and we can get to the bottom of it.

Kids – $300

We decided to stop contributing to the kids 529 plan. $200 is for one kid. We also spent $93.11 for the trampoline playground. Not worth it, in my opinion. The kids are just too young for it and it was expensive. The rest are for supplies for AHP’s coop that I donated.

He got stuck!

Utilities – $265.52

These are for water, sewer, garbage, cell phone and last month’s subscription to HBO Max. It looks like we’ve been using 2gbs of data on average and our cell phone bill is now normally $29.29.

Home – $116.4

This is for one month of HOA. We paid for a late fees because it was on an auto pay from a bank account that we closed.

Auto and Transport – $106.37

3 trips to Costco for gas and $40 for my carpool for the month of January and March. I prepare taxes for VITA and carpool with my neighbor three times a week. It’s a fun retirement job and I get to do it with my retired, 74 year old neighbor.

Shopping – $18.10

Subscription fees for Amazon, which we mainly use for music. I also bought some sunnys for the kiddos, for one week when the sun came out!

How to report a backdoor roth IRA using H&R Block Software: A step-by-step guide

I’ve been using H&R block software for the last 3 years. I used the downloadable software which allows me to e-file 5 federal returns. I used the software to file ours (1), my 3 siblings (3) and my parents (1). I used the premium version which cost $54.95 at Amazon.

What is a Backdoor Roth IRA?

According to Mootley Fool, “A backdoor Roth IRA is a retirement savings strategy whereby you make a contribution to a traditional IRA, which anyone is allowed to do, and then immediately convert the account to a Roth IRA.”

In layman’s term, a backdoor Roth IRA is a way to contribute to Roth IRA if you are above the income threshold that the IRS allows. You can find the threshold on IRS website.

Ideally, your traditional IRA balance is 0 before contributing to backdoor Roth IRA. You can do this by rolling your traditional IRA balance to your 401k, before doing this conversion.

For this scenario, Taxpayer (TP) has 0 dollar balance in traditional IRA. This is done by moving the balance to the TP’s current 401k. In January 3, 2022, TP contributed $6,000 to a traditional IRA. In January 5, 2022, TP convert the traditional IRA to Roth IRA. By December 30, 2022, TP has 0 balance in traditional IRA.

TP receives the following IRS document from the brokerage account:

  • Form 5498 IRA Contribution for Traditional IRA
  • Form 1099-R: Distributions from Pensions, Annuities, Retirement or Profit Sharing Plans
  • Form 5498 IRA Contribution for Roth IRA

Step 1:

Add all your income from W2s and other incomes.

Step 2:

Add the IRA contribution. You will see this under the Federal Section –> Adjustment Tab

This will trigger the software to create a form 8606, Non Deductible IRAs and it will look like this:

Step 3:

Add the 1099-R. This is the distribution made from Traditional IRA because you converted the contribution to Roth IRA.

You now have conversion documented in Form 8606, step 2 and it will like below:

Congrats! You now completed the form 8606 for 2022 tax year.