June 28th, 2010

moneybear

I Love You, Mr Taxman

Every year in March or April I will usually make several posts/rants about the IRS and/or paying taxes. I like to consider myself a smart guy, so if I have a difficult time figuring out my relatively simple taxes, I can imagine what the average Joe goes through. It's one of those mandatory things you MUST do where a simple math error cold cost you thousands of dollars or perhaps even send you to jail. I guess that's why H&R Block makes so much money. Why am I writing about taxes now in June?

On Saturday Kitty came in from getting the mail and uttered the phrase that makes my blood run cold, "Honey! You got a letter from the IRS!" *eep!* The last time I got a nice letter from the IRS they told me I had made a mistake on my taxes and had to pay several thousand dollars. Fortunately it was just a matter of them losing one of my forms, and the issue was easily resolved. I opened this letter and saw the dreaded phrase, "We have discovered errors in your 2009 tax return." Ugh. The first mistake was a simple math error in calculating my income which didn't cause a change in the amount of tax owed. *phew* The next error said that I had overpaid my taxes by $400. Bwah?!? It referred me to line 63 where there was something called the "Making work pay tax credit." WTF was that?!? I do believe it is the same thing as a stimulus check. I paid no attention to it since I didn't get a check. This credit was exactly for that! If you didn't get a check, you could claim a tax credit! So it was awfully nice of the IRS to point out that I had missed out on free money! They would be sending me a refund check in the mail. WHOOT!