Monday, February 8, 2010

The Tax Man Cometh

It was a depressing week-end.

It was the week-end I set aside to do my taxes.

I always get money back--anywhere from $1000 to $5000.

I knew this year's refund would be lower since I no longer have any exemptions other than myself and I now have to file "Single" as opposed to "Head of Household."

But never did it occur to me that I was going to have to PAY!!!!!


The Feds will give me $45 back, but the state wants $165.

So much for my plans to set up my emergency account (which currently has $54 in it) and maybe pay off one of my credit cards.

Color Grace bummed!


Anonymous said...

What a bummer. But now you'll be able to plan for it next year. This year has been filled with learning, eh? Possibly too much learning.

What else can you do to get back on track? Is there anywhere you can cut temporarily? Anything you can do to bring in more income? Anything you can sell?

I worry.

Mr. ToughMoneyLove said...

Grace: I'm surprised that you cannot file with Head of Household status. Don't you have a qualifying person living with you?

Grace. said...

Unfortunately, no. My 19 year old doesn't live at home and is not in school, having already graduated from high school. My 28 year IS at home but I can't take the deduction for her. My son-in-law gets public benefits (food stamps and employment-related daycare) for his two kids, so I can't claim them. Bummer, huh?

Anonymous said...

All the more reason to cut up the credit cards, draw up a budget, start the envelope system, and refill the emergency fund. The Dave Ramsey approach works for people that don't have the discipline to solve their spending problems themselves. I don't care for the evangelical rhetoric that's served up with the plan, but the plan works for people that need it and will stick to it.

Anonymous said...

Hang in there, Grace. I'll keep my fingers crossed that something good will happen for you and yours.

Mr. ToughMoneyLove said...

Grace - Not trying to get all up in your business but you are aware that a "qualifying relative" for Head of Household status can be a child of any age if she meets the residency, support and income limit tests. In fact, a "qualifying relative" doesn't even have to be related to you. I assume you know this.

MasterPo said...

If you're counting on a refund as "savings" then you had too much tax witheld to begin with. You gave Uncle Obama an interest free loan for the year.

He wouldn't do it for you.

Grace. said...

TML--I did try to see if I could squeeze a "qualifying child" out of my grandkids, but (1) they've only been with me since September; and (2) their father gets public benefits on their behalf, so they don't qualify me.

Po--you're right, of course. Actually, I'm probably having exactly the right amount taken out now since I'm getting a very small amount back from the feds and paying a relatively small amount to the state. BUT, I was really counting on a refund!!

Anon--keep those fingers crossed. I'm feeling down and whiney at the moment, but I do know I'm in a better position (have a job, a house, family, etc.) than lots of others.

Living Almost Large said...

It happens to the best of us. I too hope not to owe money this year.

Revanche said...

I'm disappointed that even with all your dependents, you still don't get to claim them as dependents. That's a huge bummer. Sorry that derails your plans a bit.

(I'm sleep deprived so I'm aware I could just be grasping at straws but ... do you still provide support for your son? I believe if you provide enough, say 50%, you can still claim him even though he doesn't live with you. I suppose that since your Son-IL claims pub assistance and has his own dependents, you couldn't possibly recruit HIM as a qualifier?)