2023 was our first full tax year as “retirees” (meaning no full-time employment). I worked a part-time job for about six months last year, having extra money withheld to cover any potential taxes due from our other income sources. I prepared and filed our tax returns as I always do.

The federal government and state of Georgia treat certain types of income very differently. This resulted in a refund on the federal side, only to be offset by what we owed the state. In addition, Georgia exempts certain types and amounts of income once filers reaches a certain age. We’re not there yet, but look forward to those future tax breaks in 5-6 years, should we still be living in Georgia.

Our taxes are definitely a LOT less than when we were working full-time. Yes, our earned income is significantly less, but the tax treatment for dividends and capital gains is much more favorable than it is for ordinary income. As for wondering if should we make estimated tax payments? Nope. I can bump up withholding amounts slightly from any part-time work and my pension payments to cover most of the tax liability. We’ll probably owe the state for the next couple of years, but the “underpayment” penalty is nominal. I’ll just plan to settle up with them in April of each year. If I were to make estimated payments based on this year’s numbers, I would set aside about 8-10% of our total gross income for fed & state taxes combined. Your situation may be different.

Bonus!!! This week I realized that I only have TWO health insurance premium payments left at COBRA rates. Once pension checks begin, rates will drop to employee rates. Cue the happy dance!

Finally! A Monday to call my own for the first time in nearly three months. It’s spring break! Most of the Atlanta metro public and private schools are out this week. A lot of folks typically get out of town for spring break – not me! Hubs and I will hopefully enjoy lighter traffic as we commute to our volunteer activities this week.

Today, I’m headed to the SQTM in Carrollton to help organize things for summer quilt camp and have lunch with some of the other volunteers. The rest of my week will be spent immersed in quilting activities, spring cleaning and finalizing our taxes. Nothing too strenuous.

Details for an upcoming quilt retreat were also sent yesterday. I’m so excited! Found the perfect mini-quilt to make for the retreat swap! And now add a toddler quilt to the quick turnaround list: my niece and her husband have a court date later this month to finalize the adoption of an 18 month old girl they’ve been caring for since she was a few days old. Welcome to the family, little one!

Below is the finished bench pillow sample I made for an upcoming class at the SQTM:

My pillow is 14″ x 28″. It’s smaller than the usual 16″ x 38″ size popular with Kimberbell, Riley Blake Designs and other designers. Remember, you are the boss of your bench pillow. You can make it whatever size you like. Pillow inserts are available in various sizes. However, you may find it cheaper to buy a yard of muslin and a 2 pound bag of Polyfil to DIY.

Bench Pillow Resources (free):
Moda Mini Charm Bench Pillow. (14″ x 28″ size)
Polka Dot Chair. (16″ x 34″ size)
Smaller Bench/Lumbar Pillow (14″ x 24″ size)
Missouri Star Bench Pillow tutorial (video)
Envelope Cover for Rectangular Pillow (video)
Standard Envelope Cover (video)

If you want to get really fancy and/or spend some moolah:
Kimberbell offers tons of bench pillow resources geared toward embroidery machine owners.
Riley Blake Designs offers bench pillow kits (no embroidery machine required).
Shabby Fabrics offers video tutorials, books and kits.