:::: MENU ::::

Browsing posts in: Taxes

Tax Time is Here

by

I’ve finally received all my tax documentation. And I’m anxious to file my return in hopes of a return this year. Before my corporate job went bust a year ago, I was “overpaying” the IRS. With my unemployment I did the same.

And finally, with my quarterly business taxes, I have over-paid. I didn’t want to take any chances of owing any more money.

Since I didn’t make quite as much money as I anticipated and overpaid all the way around, I am relatively confident I will get a refund. Both state and federal.

But I’m not sure how much as I haven’t read up on the new tax laws.

How are you feeling about tax season? Did you over or under pay?

My father also advised NOT giving the government a interest free loan and to get as close to breaking even as possible. And I’ve always lived by that, until this year.

But I do really understand the “anticipation” of getting a refund now. I’ve never really paid attention to all the extra marketing that goes into sales during this time of the year:

  • Spend your tax refund here,
  • File your taxes here and use your refund on a car down payment,
  • We will give you your cash now, don’t wait on the IRS,
  • and so on.

I’m not at all tempted. My refund will be going right to debt. And I couldn’t be more excited!

But the twins have big plans for their refunds. And all I respond with every question they ask is “do you think that’s a wise financial decision?” I’ve decided not to “force” my opinion on them and just watch what they do. It’s the last year for Sea Cadet to be dependent on me, no better time for him to stretch his independent wings.

If you are getting a refund, do you have plans for it?


Plan #6: Tax Debt

by

We survived No Spend October, extended it into November and have just returned from a fun holiday week with my family, it’s time to get serious about driving down my debt balances again. As I mentioned in a previous post, I was able to save enough to pay a good chunk towards my tax debt the week before Thanksgiving.

I did really well in the last year with my targeted plans:

Pay Off Tax Debt

I had decided before the overwhelming success of No Spend Month, that the next debt I would zero in is the outstanding tax debt left over from my marriage. While the interest rate is not as high as my credit card, the mental burden is HUGE! And I want it gone.

I have decided to take a page from the Dave Ramsey playbook and focus on it with a debt snowball. (Not sure if I’m saying that right.)

I’m going to continue to pay the minimums on all other debt (except my car payment which I will continue at $400 per month instead of $308.) And then at the end of every month, make an extra payment to the tax debt based on my income that month.

Anticipating that work will continue to be steady and continue to grow, my goal is to have this debt completely eliminated no later than January, 2019. But I hope to pay it off in December by sticking to a more frugal monthly budget as we did in October. As of now, the balance is right around $1,001.

Full debt update coming next week…

 

 

 


Pages:1234567...15