Okay, I Just Need to Bitch For a Moment

For the past, oh, I dunno….several years?  I was making good money.  I had one steady job after another and was able to pay my rent and bills and still have money left over.  In fact, I actually had EXTRA money taken out of my paychecks every pay cycle, by both the Fed and State, in order to get a little cushion each April.  A little bonus, if you will.

Now, I always ended up owing State taxes anyway, mind you.  But the payments were less and less each year, once I figured out that I had to withhold more.  So I’d owe the State, say, anywhere from $100 to $200 per year, but I’d get refunds from the Fed that more than made up for that.

Well…not THIS year.  This past year, I was unemployed.  And just to make my rent, my first five months of unemployment had no Fed or State taxes withheld.  After that, I opted to move my 401K over to another investor, so did a rollover, reinvesting everything but $5,000 which I needed to survive.  When I took that $5k, I did so with the understanding that I’d owe 10% this year, or $500.  Well, silly me, I figured, “Gee…I always get at least $800 back from the Feds each year, so if I end up owing $500, that means I’ll still get at LEAST $300 back in my refund…”.  Silly me.

Seems that when you’re hit hardest, and need the most, you end up getting hit hardest yet again.

I just did my online tax return and found out I owe NOT just $500…but over one grand.  Because I opted to have most of the taxes withheld from my measly unemployment payments, and my measly temp pay, and my measly new paychecks at my new job.

Why is it that they’d kick a girl when she’s already down?  Why?

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7 thoughts on “Okay, I Just Need to Bitch For a Moment

  1. cmaukonen

    I understand that there is a group of pissed off tax payers that you might be interested in approaching. But I forget the name.

    Oh well…think I’ll just get a cup of tea.

    1. Hahahahaha! No, no…I’m not THAT pissed off.

      It’s just frustrating as hell to me, the fact that when I was doing much better financially, I could afford to have extra money taken out of my paycheck, and yet now that I’m hurting so much, I can barely get by on a paycheck and yet owe more taxes.

      There’s something so wrong with that.

      1. cmaukonen

        There is. And though I was being more than a bit sarcastic, this is one of the reasons that people are getting pissed at the government. If this has happened to you, then it’s likely happened to many, many others as well.

        And when they see those in the upper income scale apparently getting away with paying little or no taxes, this really makes them angry.

  2. It’s worth noting that most typically taxes are deducted on a paycheck by paycheck basis. That is, pay as you go, ostensibly, for government ‘services’ you receive. These services may be real present day services or accrued and deferred.

    Government itself doesn’t work in this way though. Not ever. Government just spends and spends without regard to income.

    What I do, and I can do this because I’m self employed, is I don’t pay them anything. Not until the last income quarter of the year. I keep my money all year and what I send them at that 4th quarter is enough to cover so I don’t pay a penalty for not giving them anything all year. Even if I didn’t send them a dime the penalty isn’t huge. I don’t think they care one bit. As long as you pay in the end at tax time.

    There is one thing you neglected to mention about your rollover. In addition to the normal taxes due upon withdrawal, there is a penalty on top because until you are 59 1/2 withdrawals from 401 or IRA are normally subject to early withdrawal penalties. Maybe not always, but this is the normal arrangement. The tax penalty is currently 10% of the early withdrawal amount. Quite nasty.

  3. It is so difficult to try to get by for most Americans.

    Your example is troubling, soooooooo troubling.

    It is not that there are those skating through life with everything including all the tax breaks, etc…

    It is that they have not earned it!

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