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Posts tagged with: Taxes

IRS Frustrations

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The IRS is currently working its way to the top of my list of most hated organizations to deal with.

My current Top 3 List of Organizations I Hate Dealing With include:

#3. Social Security (I am the representative payee for my father so I have to deal with them in reference to his disability payments, and it suuuuuucks the life out of me!)

#2. IRS! Read more below.

#1. Navient. Oh Navient, you know how much I hate you.

(Side note: Hmmmm, interesting how 2 of the 3 are government organizations and the third is also backed by the federal government. Inefficiency, much???)

Nothing like calling the IRS, sitting on hold for half an hour, and then having the line disconnected. Only to call again, sit on hold again, and have it disconnected again. I think there might be a 30-minute time hold limit and then the IRS system automatically disconnects??? I’ve been sitting on hold while working at my desk so I’m not out and about with poor cell service or anything like that. Grrrr!!!!! If you can believe it, I’m still trying to set up a payment plan from my 2016 back-taxes!!!! AGH! In April we sent a huge payment and tried to initiate a payment plan at that time. Thought it was all set up, but it turns out it was never accepted. I’ve tried calling multiple times but have been thwarted every time (to clarify, I’ve been able to speak to people, but they can never help me – they have to mail me something to sign, or transfer me to another department. It’s a whole cluster-f over there)! I’ve been making payments online through their online system just so they’re receiving something, but it hasn’t been officially set up yet. I was just able to (fingers crossed) finalize everything today, but they still deal with 1983 technology so the official agreement has to be mailed out, signed, and returned. Sooooo, still not completely set up but at least it’s progress compared to the past 7 months of nonsense. The issue, if you’re curious, is that when we did our 2016 taxes we also had a small amount they claimed we owed from 2015. We had an accountant help us with everything and agree the 2015 charges shouldn’t exist. So everything was on “hold” with 2016 stuff because we’d refused to sign an IRS agreement of taxes owed for 2015. I guess they couldn’t move forward with any payment plans unless and until the discrepancy was resolved, which took a long time and a lot of snail-mail back-and-forth. (Who doesn’t use internet these days??? I mean, I know it’s secure info but there are lots of ways to encrypt email, right???)

Anyway, it’s been a pretty shitty past couple of days. A lot of stress with work drama and some nonsense going on at our kids’ school in addition to the ever-present financial stress we have in our lives currently. I’m glad to have this minor “win” on the IRS front. Not that it’s even been officially completed yet. But I think we’re finally on our last step. Supposedly, the papers will come in the mail, we sign and return, and everything should be set for our first OFFICIAL payment starting in December. We’ll be paying $283/month, which is significantly LESS than what I’d been paying previously through their online system. The reduced payment means we’ll be paying for a much longer period of time (ummmm, approximately forever???) But with our serious budget shortfall going on right now, we really can’t afford to continue making larger payments. So it is what it is. And we keep moving forward.

My motto the past few days has been: Make today better than yesterday and tomorrow better than today. My husband thought it sounded a little pessimistic, but I think it’s optimistic. Looking forward to a better tomorrow! 🙂


Hope’s Debt – October, 2017

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Creditor
Balance

(as of 10/14/17)
Interest
Min. Payment
Car$10,0007.00%$308
Credit Card$5,00017.00%$36
Summer Camp (2018)$3,3750.00%$500
Student Loans$34,3492.88%$307
Computer Equipment$2,73822.90%$84
Taxes (State)$6,0000.00%$100
Self Lender$1,01310.57%$97
Collections 1 (Medical)$618
Collections 2 (Apartment)$499
Collections 3 (Ex-husband)$6,9546.25%$246
Amazon$52726.99%$25
Total$71,073$1,703

Credit

Car – I recently wrote a post on this new debt. You can read it here. My goal is to pay this car off in just at two years, by paying $500 per month.  My first payment of $400 will be paid this week.

Credit Card – For the last several months, I have been paying this card off every month and then charging everything I could to it…monthly bills, groceries, gas and so on. In doing that, I have paid less than $10 in finance charges. The problem is that I can’t get it to a $0 balance. And this bothers me. I am literally paying it and then using it. I don’t think this is wise and I want to get it to a $0 balance. The nice thing is that I do earn points with every dollar spent that I can convert to cash.

Amazon – this is a line of credit with Amazon that I typically pay off every month. I use it frequently for household items, etc. But now I am at the point that I would like pay it down to $0 and keep it there rather than rolling it every month.

Computer Equipment – I know this was a dumb decision, but it’s one I cannot regret. All three of the kids have new laptops. With me being gone some much, a lot of their schooling is online. It makes it easier for me to track their time, help them remotely and they have Skype classes specifically with a Spanish tutor. And, of course, the majority of Sea Cadet’s 11 college hours are online. This is my personal number one priority to pay off.

Chosen Debt

Summer Camp – I mentioned this in my recent budget update, technically I could stop paying this at any time or wait until next summer and pay it in one lump sum.  But paying every month, with a pay off in April makes me more comfortable and assures that my kids have a plan for next summer without me scrambling. The total amount covers 6 weeks of camp next summer.

Self Lender – this is also a “chosen” debt. It’s actually a CD that I will gain access to next September when paid in full. They report to the credit agencies which was my motivation for opening the account. I need massive repairs to my credit and this is essentially forcing me to save (thinking Christmas next year.)  Have you heard of it? Thoughts?

Collections

Collections 1 – I will argue to the day I die that I do not owe this debt. This is medical debt from the twins which the state is supposed to pay in full via the provided medical insurance. A couple of years back, the state inadvertently cancelled the twins insurance, and while they turned it back on the next business day, this fill fell through the loop.  I have called medicaid, the state, the twins caseworker, and so no to no avail.  In order to get it off my credit I may have to pay it, but I definition do not owe it!

Collections 2 – Evidently our apartment charged me for damages to the apartment we moved out of a year ago this past April. I NEVER received any notice of that, it just showed up on my credit report. Two things regarding this…they kept my entire deposit. No problem, we had animals, I respect that. But two, our apartment was as spotless as an apartment can be after people live in it for almost two years. The carpet was clean, the apartment was clean, we hadn’t hung stuff on the walls so there was no wall damage.  But as it has been so long and I have no “proof” I am probably going to have to pay this one too.

Collections 3 – Another unknown debt that appeared on my credit report, again from my marriage. It has to do with a line of credit on our old house, which he bought me out of 8 or so years ago. I am working on fighting this one too, but for now, I have made payment arrangements with them and they have removed it as a derogatory statement on my credit report.

Taxes – This is a placeholder debt. With all our moving around, mail is just starting to catch up with me. This state tax debt is from the year my ex and I divorced. While I have filed every year, he may not have. I have arranged a payment plan of $100 per month while I track down tax filings, etc. to defend my “lack of liability” for this debt. We will see how it goes.

With all this on out on the table now, what do you recommend as my plan of action? What should my priority be?