Wednesday, March 14, 2012

A teeny little tax rant...

I wonder what kind of tax code results in a husband and wife owing more taxes than the previous year when the year's income went down and the main breadwinner suffered unemployment?  Ah, the tender mercies of bureaucracy!

It was ignorance on our part, really.  We did not realize the child tax credit goes away the year the child turns seventeen, so hadn't adjusted our withholdings accordingly.  Also, it is a little known fact-- at least it was little known to us-- that unemployment benefits are taxable income, although the government does not offer pre-tax withholding on those benefits.

At least now you know and won't be surprised. ;o)  Forewarned is forearmed.  Although it may change at any moment.  The tax code is a seething morass full of writhing legislation suddenly shifting ...  I vote for a flat tax on purchases rather than income.  Even a graded tax on purchases rather than income would be easier to understand than what we have currently.

In light of the happy list, I'm trying to move from anger to the idea that we have a front-row seat in which to watch the Lord work.  We're currently praying that the vehicle doesn't break down and nobody needs a doctor until after we get the taxes paid.  :)  Actually, if that could go on indefinitely, it would be great.

The Lord is amazing... we have had our van almost eight years and it has over 175,000 miles and it still runs well.  The other day I averaged our last nine months of van repairs, and our repair bills are still less than a car payment. Of course, it may die tomorrow.  But so might we all. :D  Then we would be in heaven with the Lord, which is more than I can say for our get-out-of-debt van or the tax code.

And that is my happy thought for today.


North Laurel said...

The Lord is amazing! Glad to hear that your van is still running well with that many miles. May God continue to keep His hand of protection on it and your family.

Taxes are just horrid. Enough said.

Javamom said...

We don't deal with the unemployment issue, but the taxes and losing dependants are one reason I have let my Spanish classes get small, and am considering only teaching conversational/tprs classes from now on. Since we switched our insurance deductible, we bring home more $ per Hubs's paycheck, and my side $ is not needed. It is all for my personal benefit at this point. Credit classes get me down, when students don't put in the real work of learning. Another reason to simply teach story-telling and interactive classes. The students get out what they put into it, and I am just a guide, not a magician. LOL.

Also considering teaching some bookbinding classes again (I've had several student comments in the last couple of weeks) instead of those for-credit classes, and also just offering tutoring as an option to our other hs friends who don't cm hs.