Monday, February 2, 2009

Tax Frustration

I did my taxes on Saturday... and it was not as easy as I expected. In the past I used TurboTax and it was always a breeze... but not this time. I think it was because Hannah did not work last year and it put us in a lower tax bracket. But most of my frustration came from these insane contradicting questions they kept asking. For example, I was asked, "Were you required to pay estimated taxes in 2007?" I answered "No." Then they asked, "So what was the first month you started paying estimated taxes in 2007?" What! I just told you I did not pay them! My other frustrations revolved around the Earned Income Tax credit. Let me lay something out here, I REFUSE TO RECEIVE MORE MONEY BACK FROM THE GOVERNMENT THAN I PAY IN TAXES. That means I WILL NOT ACCEPT WELFARE CHECKS FROM THE GOVERNMENT no matter how little pay we receive! So if I would apply for the EIT credit (for which I am eligible) I would receive more money in my tax refund than I paid last year in taxes. That is not acceptable. And regardless it would also raise our chances for auditing significantly... which is something I want to avoid at all costs. We have been hounded for years over a small mistake in Hannah's 2004 taxes and now they watch us like hawks. And if we try and call the numbers they give to talk to them we get the message "I am sorry buy the number you are trying to reach has been disconnected." Wow. Should I be surprised, though? In the end they forced us to double-pay a portion of Hannah's 2004 income tax. But we have been flagged and the IRS is far too heavy an organization to deal with.

But I was able to get out of the EIT stuff and got my taxes successfully filed. Now time to wait for my refund.

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