Wednesday, May 28, 2008

The Tax Bill Cometh

All day yesterday I was formulating in my head a post about how we hadn't yet received a bill for our federal taxes, lamenting how poor a job the IRS was doing in sending it out. Which is pretty stupid, actually, since the taxes were due over a month ago. So it was really me who did a lousy job by not preparing for the nearly $4000 we owed for 2007 taxes.

But I digress. It was all spoiled yesterday when I opened our mailbox and pulled out a shiny letter from the IRS, stating that we have an amount due on our income tax. Finally! I have been like a little kid, running to the mailbox every day, hoping upon hope that the bill would be there. (Well, not actually running, more like walking briskly from my car, parked directly outside the post office.) I just couldn't wait to get this bill. I was so upset and irritated that I made the mistakes of not withholding enough, not filing early enough, and not saving enough to pay the taxes on time. Finally I can fix it and make it all go away.

The original tax due in April was $3481. At that time, I sent in a check for $500, which brought the "overdue" amount to $2981. The underpaid tax was then penalized a half percent for each month overdue (April and May), or $29.81. Then 6% interest was charged on the principal for the 41 days overdue, which came to $20.10. Now, I am not a big fan of interest or fees, but compared to some I have seen in the past, these are incredibly reasonable. I was expecting worse.

My husband got paid today and I will be getting my paycheck tomorrow, which together provides us with enough to pay off this bill at the end of the week. Before I got ahead of myself, though, I looked deeper in the mail and saw another letter from the IRS - this one about the economic stimulus package. It stated that we would be receiving $1200 no later than May 23. The letter arrived in my mailbox on May 27. Then, in small print on the back, it mentioned that if outstanding taxes were owed, the economic stimulus would be applied directly to the balance.

I would love if they took the stimulus check and reduced the tax bill by $1200. However, I don't want to pay the tax bill if it's going to be reduced by $1200 in the near future. I called the number on the tax bill to figure this out and got some weird static on the other end, so I will have to call the number on the stimulus check letter. I am just trying to be patient and accept that we will pay it off soon.


Murena52003 said...

Hello. My name is Nellie. I like your blog and I wonder if you could write a post (review) about my credit card site and place it on your blog (around 150 words, 1-2 anchor). Is it possible? What is your lowest final price?
If not, tell me what kind of links you can offer. Non- site-wide links please.
PS: If you have any other good blogs, you are welcome

Anonymous said...

Yes, they will take your stimulus check off the balance you owe. I believe it is on the IRS website.
Great Job!

Anonymous said...

[p]In the springtime from the the [url=]cheap tiffany and co[/url] year 2010 season, new designs of Pandora elegance of getting released . Tiffany jewellery is a entire world famous manufacturer and name . Also, we often comprehend Tiffany jewellery since the queen associated with jewellery since of the numerous all favor Tiffany and need to have upon these vibrant jewelries to exhibit off special layout as well as attractiveness . Moore & Co . The fantastic colouring from the tanzanite gem can be bought through through light/pale pink, to be able to loaded sapphire-type pink, while using priciest along with popular sort becoming that will connected with [url=]discount tiffany[/url] the one that displays the deeply pink heart plus a tip connected with violet-purple halo across the surface borders . Classic design is Tiffany [url=]tiffany for cheap[/url] (Tiffany) of work definition, this means that each one amazing perfect masterpiece can be passed down from generation to generation, the eternal charm . "We [url=]tiffany and co sale[/url] are without a doubt the most vertically integrated jeweler in the world," said Kowalski . The spiritual knowledge from the Discount Pandora Bracelets Hometree, The Tree of Souls [url=]cheap tiffany jewelry[/url] along with the Floating Mountains will enthrall you and expand your experience . Goodman?s Jewelers has the ?Goodman's personal ingredients label Diamond,? a diamond that no other jeweler carries.[/p]