Friday, January 30, 2009

Taxes Schmaxes

So, Jeff is always really excited every year to do our taxes, because in the past it has meant that the state and federal governments send us some moula, and who doesn't like that?

Haha. This year, he put in the W-2 form information, and shocker! The tax website that we always use said that we owe the government over $200. Which is a surprise to me. It seems like the government messed up. I mean, it's their job to take the taxes out of our paycheck right? Why did they forget to take some out, and why would we owe it if they just give it back to us?

Well, apparently me working full time and Jeff working full time for half the year makes a difference in what we get back. I guess not all people get everything back. We just did because we were poor.

Hmm. I kind of liked getting it back.

So, now Jeff is fiddling around and reading everything and trying to see what things he can claim, etc. etc. I really have no idea what he's doing. So, he's finding out all of these things that we could have done last year and that we could declare this year that make a difference in our taxes.

It has been a real learning experience for me. Every 20 minutes or so, he looks up and says somethig like "how much money did you spend on prescription drugs?" "how much did we donate to charitable organizations?" "how much have you paid in medical bills?" "do you have the receipt for blah bleah bloo?" And so forth. He even asked me what allowances I had. I am so confused.

The big benefit of all this is that we still don't make that much money and our family is small. Imagine if we didn't become educated (well Jeff become educated) on all of these things until the taxes get even more complicated? The days of using only the W-2 forms appear to be gone—far, far behind us. At least we're not waiting until they are due, like in April or whenever. :)

And yes, I know that my ignorance is dangerous. I should pay more attention and learn about it, because it is good for me to know how to do it, too.

Awwww. Jeff just wanted to see what would happen if Jill had already been born. Sigh. We would only owe the state $90, and the federal government would give us over $2,000. Hm. So, that will be fun next year. Although, since Jeff graduates in April, I do hope we make more money next year than this year. Maybe not though, because we won't have both of us working full time for part of the year. (I hope to not work at all or maybe do something from home depending on what I feel up to.)

Anyway, this is my tax story. I'll keep you updated if there are any exciting, exhilarating, fulfilling changes!

4 comments:

  1. try living with an accountant!

    the other perk to having a baby is that assuming you work but still don't make bank, you qualify for a credit (the earned income credit) which means you actually get money from the government. Not just a refund--more than you paid in taxes!

    Guess they want to encourage people to work and not just live off welfare forever.

    Has Jeff used the free turbo tax program to see if it finds any other tricks? that's what eric usually does, even though he studies this stuff.

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  2. hmmmm that is very interesting information (the earned income credit thing). :) how little is "not making bank"? do you know off the top of your head? it's okay if you don't. i think that's cool that they have something like that to encourage people not to live off of welfare. umm. jeff for the past three years has just paid some money (under $20) and uses tax slayer. i don't think it finds tricks for him though. he just reads all of the stuff and fools around putting in money into different columns. apparently we'd get a really big tax whatever if we open an IRA and buy a house. :)

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  3. i am just glad I don't have to pay taxes on mary kay stuff this year... i have a whole year to try and figure that out. assuming I don't procrastinate... oh dear.

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  4. Yeah, taxes are simply lovely, aren't they? I hope I won't owe this year, but I have a feeling I may.

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