Taxes

I didn’t want to write this post. As a matter of fact, after hearing from my accountant last night, I wanted to bag this whole blog and throw in the towel. But, I committed to writing about the good and the bad, successes and failures, so here I go.

We were expecting a large tax return. We still owe our taxes from the previous year, but were had already arranged with the IRS for them to take it from this year’s taxes. We expected to still have some left over. You can see where this is going. It didn’t turn out as we had expected. Turns out that my employer was taking less than 1% out of my paycheck for income taxes. I haven’t spoken to my employer yet, so I’m not sure how that happened. I know that I was not claiming too many exemptions, so I will be looking into this today. Of course, it won’t make any difference on taxes owed this year.

So, instead of getting ahead, as I had expected, we’ll be adding another two (federal & state) monthly bills to those that we already cannot afford to pay. I’ll have to contact the IRS and  the state of Colorado to get on a payment plan. I hope they will agree to let me pay $20 per month, because I can’t send more at this time. Hopefully, by the end of the year I will be able to send more.

I’m trying not to let the frustration get to me. I feel like I’ve been so responsible and taking all the right steps. But, it just seems to be one step forward, and three steps back. I feel like we’ll never get out of this mess.

There is a lesson in this story too. Staying on top of your finances means staying on top of everything. That means looking at your pay stub regularly and making sure you are comfortable with the amount of taxes being withheld. It’s not a complicated procedure. Simply look at your pay stub, see what is being withheld, multiply that by however many paychecks you get per year, and compare that to your tax bracket, to make sure you are within the ballpark. Don’t know what income tax bracket you’re in? Time to figure that out.

Sorry to be a downer today, but I did say I would share it all.

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2 comments so far

  1. Jess on

    Take comfort in knowing that there are a lot of people listening to you and supporting you with positive thoughts, prayers, and good ideas to help you through this. You are doing all the right things right now. They will start to pay off (pun intended) soon! And your brother-in-law swears he could get you a great job in Wisconsin if you’re ever interested! 🙂

  2. Nancy McDowell on

    The past 2 posts exemplify the nature of life it’s self, the truimphs so quickly diminished in the face of the latest setback……………
    There will always be some new unseen hoop no matter how hard you stay on top of EVERYTHING, don’t beat yourself up for not realizing it, next time you WILL know to double check on your paystub and at least you are filing your taxes, I can speak from experience the IRS/State will set-up arrangements. Don’t mail till the 15th either, that should “buy you a little more time for processing and even recieving the bill. As long as you keep staying on top of it it will get better, chalk it up to an ongoing financial education that you can pass on to the rest and Stella!


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