Monday, April 14, 2008

Tax Day. Ugh!

This is the most complicated tax year I've ever had. Given I was unemployed and looking for a job you would think I wouldn't owe any taxes. WRONG! I converted my retirement next eggs to a Roth IRA and if you ever took a tax class you know what that means: ordinary income! With 401Ks, 403Bs, and ordinary IRAs the government taxes you when you make your withdrawals. When you convert that to a Roth IRA the government wants their tax money NOW! It's a fair deal when you remember the growth and withdrawals are tax free. Besides, given how little I earned in 2007 the tax hit should be minimal. Right?

Watching TurboTax go from a refund amount to a payment amount hurt. The only thing that helped me was the fact that student loan interest is tax deductible. It wiped off $400 from my bill. I don't believe I've ever owed the Feds any money so this is a first.

The State decided to play too. I coughed up a lung when I saw what I owed them. In fact since I owed over $400 the State is allowed to tack on a $10 penalty for insufficent tax payment during the year. Hey why not pour more salt into this wound bitches? Isn't it enough penalty to pay you money in the first place?

I could just mail in a check, but I would have to print off a form. Oh wait, my old printer won't talk to my new laptop. Even after I find a Vista compatible driver online it won't install. I swear Vista is a computer virus, not an operating system! I could pay by credit card online. Oh wait, they would charge me a 3% fee. I'm not paying 3% extra just to file online! I could have the government do a direct debit out of my checking account. Oh wait, that might work! Good thing I anticipated having to owe some money this year. Who needs a reserve in their finances anyway? Just hand it all over to the government yeah! */end sarcasm*

Can someone explain to me why TurboTax charges me a fee to file online? Shouldn't that be included in the purchase price of the software?

Oh well it's all over now at least. The government vampires should be gone for another 9 months are so. At least THIS YEAR I plan on working full time the entire year on a real job and having taxes withdrawn. I want my refund again.

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