Taxes, Taxes
We did our taxes yesterday and we owe a LOT of money. We owe every year since we would rather have OUR money to use throughout the year than give the government an interest free loan; but this year we owe much more than we had expected. We’ve got a couple of weeks before taxes are due to figure out how we’re going to come up with the money; but it’s not the best way to begin the spring. One bright spot is that we plan to open the swimming pool the next week. The water will be cold and we won’t be able to get in it right away; but, it won’t be long before we can enjoy it.
I’m hearing from a lot of people that they’re owing a lot more this year than in years past. Not sure what happened to all the deductions but, I also owe more this year than I had hoped. It’s not a lot since I do get taxes withheld, but usually I get a big refund and definitely not this year
What bugs me about taxes is that the really rich have accountants to work out how they can avoid paying. When they do it it’s called tax avoidance and perfectly legal. When others try it, it’s called tax evasion, and criminal.
Lauren: One of the things that hit us is that the low interest rates caused us to have a lower than expected mortgage interest deduction. We get taxes withheld to; but the amount was based upon what have proven to be inaccurate assumptions. It will be painful and we’ll make some adjustments in the coming year but we’ll still strive to not be over withheld.
Alfie: What bugs me is that the IRS is so stringet about being paid on time yet so cavalier about refunds. (That’s why I make sure I never get one.) If you’re a day late in paying, they charge you interest. But if your refund is delayed they just “advise that refunds may be delayed for some taxpayers”.
I think I’ll owe about 1k. I haven’t done mine yet.
Good luck. Taxes suck!
I agree with you about how the IRS is so stringent about being paid on time but so cavalier about refunds. When they owed me, it took them something like 3 months to get my money.
I am in the same boat, too. My mistake was forgetting our son was 19 now, and he stopped school, so I couldn’t deduct him this year… I owe just shy of $3K…
Hang in there!
I ended up only owing $86 thanks to getting a refund in the state where I live and owing the feds. I have to file three returns which is an absolute nightmare. My mother is a tax attorney and she does my returns because I just can’t keep it all straight. I sort of check boxes at random when I get funds withheld, since I don’t really know what any of the stuff on the forms means, which usually leads to a random number being owed/refunded.
Good luck getting it all straight, meanwhile, I’m all about the new car buyer credit for next year because it’s coming time for a new car!
Kate: $1K is where we try to be but we went way over that this year. “Computer problems” can slow down your refund; but you have to file on the time no matter what your situation is. Empowering the federal government with the ability to collect taxes with so few checks and balances was a mistake. Taxpayers should be able to receive compensation for their bureaucratic incompetence.
DisappearingJohn: Our son is still in school; but for the second year in a row we can’t take the child tax credit for him. And this is the last year that we’ll be able to take it for The Girl. So that’s another $500 we’ll own next year. It makes no sense that parents lose the credit when kids turn 17. We’re certainly still supporting them.
Lauren: We have to file three returns as well. The federal is by far the most confusing. But, honestly, we wouldn’t care if it took weeks to complete if we got money back. But we always seem to just miss deductions for one reason or another. We’d love to owe less than $100.
P.S. What model car are you think about getting?
Well, I currently have a 2006 Scion xA with 41k miles on it, which has been a GREAT car but is just getting a little small for my day to day life. I’d love to find something with a little more room in a hatchback style, so I am thinking about a Toyota Matrix or possibly something a little larger like the Saturn Vue or Jeep Compass. I like the Vue, my father is gunning for the Jeep. I haven’t really test driven too many yet (waiting for nicer weather) but I would really like 4wd, hatchback or small SUV. I’m going to have a tough time giving up my gokart of a current car which gets 40mpg.
Small SUVs get good mileage comparatively and are useful, especially when you have to do the homeowner thing. Small cars with great gas mileage are nice; but really don’t fit the American lifestyle. (Most cities and the country in general, are spread out which makes riding trains and busses nearly impossible for many people so we drive more.) You are in your car much too much to have something that you don’t like. BTW: You might also consider the Ford Escape.