Comments on: A Few Updates http://www.bloggingawaydebt.com/2007/04/a-few-updates/ Our Journey to a Debt-Free Life Sat, 21 Nov 2009 08:35:00 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Jen http://www.bloggingawaydebt.com/2007/04/a-few-updates/comment-page-1/#comment-29848 Jen Wed, 11 Apr 2007 02:39:37 +0000 http://www.bloggingawaydebt.com/2007/04/a-few-updates/#comment-29848 Back again with a link to an IRS withholding calculator. You'll need you last pay stub and your return for 2006 since you have to enter salary, charitable contributions, itemized deductions, etc. It spits out a recommended number of allowances to claim that will cover your taxes while minimizing your refund. http://www.irs.gov/individuals/article/0,,id=96196,00.html Back again with a link to an IRS withholding calculator. You’ll need you last pay stub and your return for 2006 since you have to enter salary, charitable contributions, itemized deductions, etc. It spits out a recommended number of allowances to claim that will cover your taxes while minimizing your refund.

http://www.irs.gov/individuals/article/0,,id=96196,00.html

]]> By: Shanathalas http://www.bloggingawaydebt.com/2007/04/a-few-updates/comment-page-1/#comment-29840 Shanathalas Tue, 10 Apr 2007 23:32:22 +0000 http://www.bloggingawaydebt.com/2007/04/a-few-updates/#comment-29840 How awful for you. To have to go through something so traumatic as a miscarriage and then have to worry about paying for the medical bills related to it. It makes me realise how lucky we are up here in Canada. How awful for you. To have to go through something so traumatic as a miscarriage and then have to worry about paying for the medical bills related to it.

It makes me realise how lucky we are up here in Canada.

]]> By: Nathania Johnson http://www.bloggingawaydebt.com/2007/04/a-few-updates/comment-page-1/#comment-29801 Nathania Johnson Tue, 10 Apr 2007 16:17:22 +0000 http://www.bloggingawaydebt.com/2007/04/a-few-updates/#comment-29801 I feel your pain about the taxes. Last year I did my taxes and realized I owed around $1000. But they sent me a refund saying that I had marked down that I was a defendant (which I totally don't remember doing!). I have never fixed my taxes. So I'm going on Friday to get this year's taxes done and I'm hoping they can help me fix last year's. I feel your pain about the taxes. Last year I did my taxes and realized I owed around $1000. But they sent me a refund saying that I had marked down that I was a defendant (which I totally don’t remember doing!). I have never fixed my taxes. So I’m going on Friday to get this year’s taxes done and I’m hoping they can help me fix last year’s.

]]> By: Jen http://www.bloggingawaydebt.com/2007/04/a-few-updates/comment-page-1/#comment-29800 Jen Tue, 10 Apr 2007 15:51:38 +0000 http://www.bloggingawaydebt.com/2007/04/a-few-updates/#comment-29800 About paying taxes versus getting a refund: Ideally you want your taxes to be a wash, where you owe close to nothing, and you get back close to nothing. Paying $800 in federal taxes is too high to be ideal, especially on your income. But, if you can adjust your witholding so you end up paying only $100 or so, then I think it would be worth it. Or even getting a modest refund wouldbe fine, again $100 or so. Also, if you end up netting a small refund amount or a small payment between your state and fed, that would be fine, too. However, this might be difficult for you to figure out if your income is going to be variable. I'm assuming that you file jointly, or if you file individiually you're combining the total you and your husband owe. In which case you might want to do research on the web on how to finesse the witholding. Ideally you would get advice from a CPA who has experience doing tax returns, especially returns like yours. (Not all of them do, necessarily - like any profession there are specialties.) But that would cost money; how much I do not know. Oh - Here's an idea - maybe you could get free, quality, professional advice? The Boston Globe has a column called the Money Makeover. People apply for one by giving their story and situation. They then meet with a fee-only financial planner who gives an assessment of their situation and advice. The catch, though, is you have to be willing to have your details published in the newspaper. Maybe there's a regional paper in your area that does something similar? About paying taxes versus getting a refund:

Ideally you want your taxes to be a wash, where you owe close to nothing, and you get back close to nothing. Paying $800 in federal taxes is too high to be ideal, especially on your income. But, if you can adjust your witholding so you end up paying only $100 or so, then I think it would be worth it. Or even getting a modest refund wouldbe fine, again $100 or so. Also, if you end up netting a small refund amount or a small payment between your state and fed, that would be fine, too.

However, this might be difficult for you to figure out if your income is going to be variable. I’m assuming that you file jointly, or if you file individiually you’re combining the total you and your husband owe. In which case you might want to do research on the web on how to finesse the witholding. Ideally you would get advice from a CPA who has experience doing tax returns, especially returns like yours. (Not all of them do, necessarily – like any profession there are specialties.) But that would cost money; how much I do not know.

Oh – Here’s an idea – maybe you could get free, quality, professional advice? The Boston Globe has a column called the Money Makeover. People apply for one by giving their story and situation. They then meet with a fee-only financial planner who gives an assessment of their situation and advice. The catch, though, is you have to be willing to have your details published in the newspaper. Maybe there’s a regional paper in your area that does something similar?

]]> By: Allyson http://www.bloggingawaydebt.com/2007/04/a-few-updates/comment-page-1/#comment-29797 Allyson Tue, 10 Apr 2007 15:14:29 +0000 http://www.bloggingawaydebt.com/2007/04/a-few-updates/#comment-29797 My experience with a payment plan with the IRS still haunts us to this day. We entered into a payment plan with them in '94, which they accepted, and then they filed a lien against us which to this day still shows as a derogatory public record on our credit report. We paid it off in '98, which should have fallen off our report in '05. We're working on getting it removed. I'm new to you site and enjoy it very much. My best to you and your family. My experience with a payment plan with the IRS still haunts us to this day. We entered into a payment plan with them in ‘94, which they accepted, and then they filed a lien against us which to this day still shows as a derogatory public record on our credit report. We paid it off in ‘98, which should have fallen off our report in ‘05. We’re working on getting it removed. I’m new to you site and enjoy it very much. My best to you and your family.

]]> By: Chip http://www.bloggingawaydebt.com/2007/04/a-few-updates/comment-page-1/#comment-29792 Chip Tue, 10 Apr 2007 14:50:15 +0000 http://www.bloggingawaydebt.com/2007/04/a-few-updates/#comment-29792 Great site! I've been a CPA for about 13 or so years and thought I might try and give a little advice on your issue with the 05 taxes. It's just my 2 cents but - I would suggest that you go ahead and set up a payment plan with the IRS. This is actually a very simple process and usually accepted without any hesitation. I agree that it is a good idea to just bite the bullet and amend the return rather than sit around for 2-3 years worrying about whether you are going to get nailed for the error. But, you will pay less interest with the IRS than you would with most credit card companies and, to be perfectly honest, they are nicer to deal with than most credit card people when it comes to missing a payment by a couple of days. Yes the IRS can take your stuff - but that is rare and wayyyy down the road after many notices and threats. You can simply offer the IRS a downpayment and then a monthly payment due on whatever day of the month is best for you. Hope that helps. My wife tuned me into your site and I've really enjoyed it. God Bless You and Your Family! Great site! I’ve been a CPA for about 13 or so years and thought I might try and give a little advice on your issue with the 05 taxes. It’s just my 2 cents but – I would suggest that you go ahead and set up a payment plan with the IRS. This is actually a very simple process and usually accepted without any hesitation.

I agree that it is a good idea to just bite the bullet and amend the return rather than sit around for 2-3 years worrying about whether you are going to get nailed for the error. But, you will pay less interest with the IRS than you would with most credit card companies and, to be perfectly honest, they are nicer to deal with than most credit card people when it comes to missing a payment by a couple of days.

Yes the IRS can take your stuff – but that is rare and wayyyy down the road after many notices and threats.

You can simply offer the IRS a downpayment and then a monthly payment due on whatever day of the month is best for you. Hope that helps. My wife tuned me into your site and I’ve really enjoyed it. God Bless You and Your Family!

]]> By: Frugal Homemaker http://www.bloggingawaydebt.com/2007/04/a-few-updates/comment-page-1/#comment-29784 Frugal Homemaker Tue, 10 Apr 2007 12:45:38 +0000 http://www.bloggingawaydebt.com/2007/04/a-few-updates/#comment-29784 I'm glad that it covered it! When I had "just in case" insurance when my husband was employed part time and I could not find a job to save my life, I was worried all the time! It did not cover birth control or pregnancy related expenses. It drove me nuts- like, you can't have it both ways, you know? I know that many people on the frugal blogsphere are anti Planned Parenthood, but they really saved my butt during those early uninsured poor days. I was like you too- I had too much in savings (not much, but too much, apparently) to qualify for any government assistance- insurance, food stamps, anything. I don't think people realize just how poor you have to be to get those things! I’m glad that it covered it! When I had “just in case” insurance when my husband was employed part time and I could not find a job to save my life, I was worried all the time! It did not cover birth control or pregnancy related expenses. It drove me nuts- like, you can’t have it both ways, you know? I know that many people on the frugal blogsphere are anti Planned Parenthood, but they really saved my butt during those early uninsured poor days.

I was like you too- I had too much in savings (not much, but too much, apparently) to qualify for any government assistance- insurance, food stamps, anything. I don’t think people realize just how poor you have to be to get those things!

]]> By: Tricia http://www.bloggingawaydebt.com/2007/04/a-few-updates/comment-page-1/#comment-29783 Tricia Tue, 10 Apr 2007 12:34:17 +0000 http://www.bloggingawaydebt.com/2007/04/a-few-updates/#comment-29783 danielle - unfortunately, we have only two choices for hospitals and neither are catholic. While I save a lot of money living where I do, I sometimes do pay a premium due to lack of available choices. Thanks for your info, though. It may help someone :) Elizabeth - no, it may not be the best thing to do and I'm still thinking about it. I know the IRS will charge interest on the unpaid balance. I'm not sure what that rate is. Once I know exact numbers I'll have to make the decision. If I can get the interest rate lower on a credit card then I may go that route. Good idea about asking other bloggers. I think I may post about this in the <a href="http://forums.moneyblognetwork.com" rel="nofollow">MBN Forums</a> (it's where a lot of the finance bloggers get together and chat about things). danielle – unfortunately, we have only two choices for hospitals and neither are catholic. While I save a lot of money living where I do, I sometimes do pay a premium due to lack of available choices. Thanks for your info, though. It may help someone :)

Elizabeth – no, it may not be the best thing to do and I’m still thinking about it. I know the IRS will charge interest on the unpaid balance. I’m not sure what that rate is. Once I know exact numbers I’ll have to make the decision. If I can get the interest rate lower on a credit card then I may go that route. Good idea about asking other bloggers. I think I may post about this in the MBN Forums (it’s where a lot of the finance bloggers get together and chat about things).

]]> By: Elizabeth http://www.bloggingawaydebt.com/2007/04/a-few-updates/comment-page-1/#comment-29779 Elizabeth Tue, 10 Apr 2007 12:15:17 +0000 http://www.bloggingawaydebt.com/2007/04/a-few-updates/#comment-29779 I am not a financial planner, but it certainly *seems* like a bad idea to pay the additional '05 IRS bill on your credit card rather than to enter into a payment agreement with the IRS. Won't it cost you more to pay the credit card interest? Do you have a friend on another one of the financial blogs, perhaps, who could advise you? I am not a financial planner, but it certainly *seems* like a bad idea to pay the additional ‘05 IRS bill on your credit card rather than to enter into a payment agreement with the IRS. Won’t it cost you more to pay the credit card interest? Do you have a friend on another one of the financial blogs, perhaps, who could advise you?

]]> By: danielle http://www.bloggingawaydebt.com/2007/04/a-few-updates/comment-page-1/#comment-29769 danielle Tue, 10 Apr 2007 09:38:10 +0000 http://www.bloggingawaydebt.com/2007/04/a-few-updates/#comment-29769 I am surprised that you ended up owing money, since you have low incomes and a child. Most people that end up owing make a lot more than you do, and don't have kids. I have one of the same health insurance plans you do. It didn't cover maternity, only complications. Miscarriage is considered a complication. The out of pocket cost for us wasn't so bad, because I went to a Catholic hospital which is charitable and works with people. They charged me a low amount as a package, and I paid my obgyn, hospital and anesthesia when I was only 2 months (well, we had savings). We've replentished the savings since then. Remember that if you get pregnant again- Catholic hospital. I am surprised that you ended up owing money, since you have low incomes and a child. Most people that end up owing make a lot more than you do, and don’t have kids.
I have one of the same health insurance plans you do. It didn’t cover maternity, only complications. Miscarriage is considered a complication. The out of pocket cost for us wasn’t so bad, because I went to a Catholic hospital which is charitable and works with people. They charged me a low amount as a package, and I paid my obgyn, hospital and anesthesia when I was only 2 months (well, we had savings). We’ve replentished the savings since then.
Remember that if you get pregnant again- Catholic hospital.

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