Tuesday, April 14, 2009

Tax Relief

Every year since we have been in our professions we have owed additional taxes. We always estimate our taxes when we get our final pay stubs and statements in December. Two years ago we owed $1400. Last year we owed $800. We changed our exemptions and were hoping this year it would work out better in our favor. We want to make it so we get a small refund -- within 2 or 3 hundred dollars ... that we we get the earned interest in our dough ... and not Uncle Sam. Our "December tax prediction" claimed that we would owe $1200 this year. I was devastated -- appalled -- angry. We are honest people. We don't claim extra exemptions so that we get more back throughout the year! It didn't seem fair.

When we owe this much in additional taxes we put off filing until the last minute. I mean who has $1000 laying around to give to the IRS? Not I. Before Joe left for Indianapolis, (yes he is gone ... right now ... on a business trip. Single wife ... single parent for the week,) he took the opportunity to update our forms and make sure that all of the numbers were in the right places. We found a significant error in our estimate. In the box where you enter the amount of interest you paid on your mortgage ... instead of putting 11,000 we put 1000. HUGE mistake. it took us from owing $1200 to owing $14. With some other adjustments ... we end up getting a federal return of $150. PERFECT!! What a relief!!!!!

7 comments:

Bryce & Cortney Alvord said...

YEAH!!! We thought for sure we'd get a nice refund this year...LOL...boy were we wrong. We barely broke even! It's always nice to find mistakes. I DREAD telling people what they owe at work. Even if they make a lot of money so that they owe a lot of money they still aren't happy. I told someone today they owed $32,000. He made A LOT but was so mad! YIKES!!!

Jess and Jen said...

That's much better than owing so much! It'll be even better now that you can claim Jace on your taxes! Is Joe gone all week? Jess is out of town too, but only for two nights...good thing because the single parent thing gets tiring really fast!

Lynsey said...

Hurray! That is great news! Glad you double checked.

Sara said...

Yay! Next time...you'll be able to claim Jace! Hehehe

Mecqae said...

yeah!!!! I wish I was that lucky, I hate owing money!

Mom and Dad said...

Jen, I'm commenting on your pic, not your taxes!
Wonderful, wonderful picture -- colors just right and the 3 of you are so beautiful, healthy and happy! Thanks again for sharing the weekend with us!
Love ya, Ann

Karen said...

Just think...in 2009 Jace will be worth another $1000 and his exemption. =)