CURSE YOU GOVERNMENT!!...waaagh. ><

[Seraph]

This is actually pretty much totally my fault, but I need to vent because I'm like mentally beating the snot out of myself.

As you guys know, I work from home to try and help pay the bills. Its tough, since I've got to the two kids here, so work's pretty much done in short, intense bursts whenever I can.

So we went to do our taxes yesterday, and I was printing out the information for our taxes....I noticed just how much I made in 2010. Suffice to say, it was over double what I made the year before, and almost as much as my husband makes with his full-time job. And I had no idea.

Last year, I didn't even bother setting aside money for taxes, we had more than enough for our refund to cover it AND give us a nice little check.

This year? After all our deductions, we still owe $1,500.

I about fainted when we found out. Now I know about vouchers and all, but omfg, I should've noticed beforehand. I should've paid more attention to what I was making...but frankly it *has* been an extra chaotic year for us.

So yeah, I'm mentally kicking myself constantly....my husband was planning on using the tax refund to pay off the last bit of his student loan. SURPRISE!! Wifey ruined it.

My first reaction was to say "Don't worry, I'll get a couple extra jobs and cover it." Then it was like, wait, THAT will be taxed too! Darned if I do, darned if I don't.

[Bright_Star]

You don't have to pay it in full. You can make payments on what you owe. The IRS will let you do that.

[Pedersen]

Well, to put it as I've seen it said elsewhere: A fine is a tax you pay for doing badly, and a tax is a fine you pay for doing well.

I'm sorry to hear you have to pay more, though. That sucks.

[Seraph]

You don't have to pay it in full. You can make payments on what you owe. The IRS will let you do that.

Yeah, but we may as well. Just frustrates me because I *just* got some money saved up to get us a couple things we've been needing. Ironically, it's just enough to cover the taxes. /sigh

Well, to put it as I've seen it said elsewhere: A fine is a tax you pay for doing badly, and a tax is a fine you pay for doing well.

I'm sorry to hear you have to pay more, though. That sucks.

Very, VERY true, lol. The more I manage to bail us out of the debt hole, the more I'm gonna have to pay. Seems counterproductive, honestly. -.-

[Taboo]

The more I manage to bail us out of the debt hole, the more I'm gonna have to pay. Seems counterproductive, honestly. -.-

Did you knock yourself up into a higher tax bracket with all the extra income? Because if you're borderline between two and the amount being taken out is that bad, maybe you can keep a running total and try not to go into that bracket next year.

Anyway, bad surprises like that suck, I'm sorry.

[Indigo]

I also know tax brackets changed between last year and this year. Last year, if I made what I did this past year, I would have gotten a nice refund. However this year, due to the changes in tax brackets, I am in the same bracket as my parents and I don't get a refund, actually I have to pay some taxes.

So I agree with your sentiments exactly.

[drunkenwildmage]

About 10 years ago, I worked with a guy who got a promotion, and had gotten a increase in pay that went with it but it caused him to jump tax brackets. This actually resulted in his take home pay being less after the promotion.

[blas]

There, there. I've been nailed two years in a row for using government bonds

The thing was, I had to use them. It was the only way I'd be able to make a decent down payment on my new car, and get the monthly payments down. The year before, it was to help get me out of some serious problems I was having with my medical bills and credit card bills.

They are a cache-22 anyway. Leave them alone, they mature and become worth more, but you'll get nailed for using them no matter if you use them 5 years later or 50 years later!

And the two years before that, because of all the overtime we did, I was put in a higher tax bracket and I had to pay in and only got my state refunds back.

It helped that this year, there was no unemployment that had to be added in there, either.

[jedimaster91]

Did you knock yourself up into a higher tax bracket with all the extra income?

That happened to me this year. New Job pays LOADS more than Old Job, and with all the training and such I had, I made quite a bit. It actually ended up being better for hubs and I to file separately. That way I didn't owe federal. He does, though, and wouldn't ya know it, his state refund is almost enough to cover it.

And here I was hoping to pay down our "pet fund" and have some left over for other pet supplies.

[Aethian]

I've always heard that when one works from home that one should always set aside a third of everything they bring in. That way when tax season comes they will always have enough for the collector.

[draggar]

We're in the same boat because my wife got her retro check for disability - that put us in a much higher tax bracket and we need to come up with thousands in medical expenses to see if we can break even.

Luckily, pet food etc.. is now tax deductible for us as a medical expense because of the service dogs.

[42_42_42]

Think of it this way: you borrowed $1,500 from the government for a year, at zero interest.

Yeah, doesn't help much, I know.

[Taboo]

I've always heard that when one works from home that one should always set aside a third of everything they bring in. That way when tax season comes they will always have enough for the collector.

Yeah, I don't remember the exact percentage but mine end up being significantly over a third of my income. Have to pay unincorporated business tax which is around 14 or 15% here just on its own.

[Seraph]

I've always heard that when one works from home that one should always set aside a third of everything they bring in. That way when tax season comes they will always have enough for the collector.

Taxes are usually about 15.7% for the first bracket, which is what I'm in right now. I think it can go to like 25% or even 33%, so yeah....setting aside more now. We had a lot of bills hit us last year, which is why I forgot to set aside extra. It just...always went straight to the bills. =/

Think of it this way: you borrowed $1,500 from the government for a year, at zero interest.

Yeah, doesn't help much, I know.

But...but...it was MY money! D:

[Mytical]

Hmm of course I don't know the exact situation, and only can go on my limited knowledge...but Draggar you might want to get a second opinion. My father's disability is not counted as income, and I believe neither was the lump sum. They have professionals do it (and not always from the same company)..but might be something to look into. Of course I will say it has been awhile since I did taxes professionally, and the rules have certainly changed.