Sunday, February 19, 2006

Taxes

I took the opportunity of this cold weekend to finish up our taxes. This is a time of year that I dread. Partly because of the work involved but thanks to tools like Turbo Tax, doing your taxes has become much easier. I remember the days of going to the post office and trying to gather up all the correct forms and then trying to figure out what goes in what box on the form. It was a nightmare and thankfully Seth and Chase will never have to do that. Hopefully when they are old enough we will just have a flat tax of some sort but that is a whole other post.

The main reason I hate tax time is because I am still scarred from doing my taxes in 1992. I was 25, recently married and dirt poor. I didn't have a cent to my name because I had spent the last 2 years either in graduate school or unemployed. Well, I did my taxes and we owed $3,000 and when you don't even have $3 it might as well have been $3 million. I am still not sure what happened but we didn't withhold enough and we also got stung by that nasty little marriage penalty.

Now, every year I still have this fear of owing this enormous amount of money that I don't have. I know, I know, I need to grieve it and get through it...

I still hate taxes!

1 comment:

Bowden McElroy said...

My wife and I both withhold 1 exemption at the single rate. And, I have extra withheld. So, I always get back a large refund.

My accountant friends tell me I'm crazy for giving the government a "free loan". I'm happy to forgo the 1% I might have earned in a passbook savings acct. for a sort of "forced" savings.

If I never see it, I don't miss it. And there's no way the IRS is going to let me have it back early.

All in all, I've been pretty happy with this approach since we started doing it a few years ago.