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2012 Taxes

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I have heard from my CPA friend and I am smiling big with gratitude!  Thanks to his guidance upon my ex’s move out, I made major withholding adjustments for the last four months of 2012.   As a result, I will owe less than $500.  I cannot begin to tell you what a relief this is!  And there’s more great news:  I can re-adjust my current withholdings because I was on track to get a refund for 2013!   Answered prayers my friends…answered prayers!  I was having near $900 PER PAYCHECK withheld!  I know I make a good income but losing $1800 per month hurts!  AND, let me just throw my shoulder out here patting myself on the back…I was STILL able to make payments toward debt and not incur any new debt.

I am a new person!  Truly!  I never thought I could do this.  Just a year ago I was spiraling out of control.  Bouncing checks!  Yes, seriously.  Only making minimum payments and sometimes scrounging to do even that!  I didn’t have money left after pay day and could not figure out why!  My debit card was flaming hot with the constant use!  And then I started blogging.  I slowly, SLOWLY started keeping track of every dime I spent and started downsizing my life in every possible way I could think of.  Remember when I went to the hair salon every 6-8 weeks for a $200 cut/color/style?!  My last salon visit was in December and I don’t plan to go back until June.  The examples are many and for those of you who have been reading since the beginning, you’ll surely remember the changes.  Have I hit major bumps in the road?  Uh, yea.  Like a surprise divorce!  And other smaller hiccups too.

I want people who are in debt to see my story!  I want to motivate others and, in turn, be motivated!  It has not and will not be easy but each of us can make changes to turn our sinking financial ship around.  Don’t be afraid and don’t wait another day to start this process.  You will find freedom like you’ve never known.


Ebay items are selling!

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I’m making some sales on ebay for my IRS debt fund!  When I update the numbers later this week I will include separate entries for what I have saved toward the IRS debt and yes…the total amount owed to the IRS.  I don’t want to do it but I know I need to do it.  I’m motivated and I hope to be further motivated by the readers.  I called the IRS earlier this week and must say they are extremely reasonable and easy to deal with–and even if they are faking their sympathy for my situation, I’ll take it!  I’m kidding.  I don’t think they are faking it b/c they can see on their system what I’ve done to right the ship.  Anyway, I got $1700 knocked off due to the extension my ex-husband filed being only linked to his tax return and not mine. Because we filed that extension jointly but then ended up filing taxes separately, I had a late file penalty on my side. Once again it never hurts to ask questions!

Separate quick note…took DD to the orthodontist yesterday.  That’s going to cost $2800 divided by 2 (because her father and I split everything).  That was a slight bummer given my good news on other $ issues, but the orthodontist has no interest great payment options that should result in very manageable monthly payments.  BUT I HATE the idea of yet another monthly payment!  If my kids weren’t dealing with cross bites that if not addressed now could result in surgery down the road, I’d be giving this second thoughts.  It isn’t only a cosmetic issue for them and two dentists that I trust and the orthodontist have confirmed this.  Always looking for a silver lining though I am glad we will be done with orthodontic treatment for each of them by the time they are in 9th grade.  At least we aren’t going to be paying for braces that much closer to college?!  Okay so I’m grasping…work with me!  😉  DS’s second round of braces will start this summer and estimate for his is $3800.  Some of that should be covered by insurance but I asked for worst case scenario from the finance gal at the orthodontist so as to properly prepare.

Have a great Wednesday!