Freakn’ Taxes

I worked very diligently on my taxes the other evening. To be honest, I look forward to doing my taxes every year…I find it fun in a way. Don’t get me wrong, I don’t find starring at paper work for hours that enjoyable…but it’s such an adult responsibility that I find a thrill in it…well, if that makes sense. Anyway…when I was done, the little piece of paper sitting in front of me stated that I owed our federal government nearly $800. Clearly this couldn’t be right. I made a mistake somewhere…after all, what I made last year wasn’t even close to $30,000.

What the heck?! That’s when I began to inquire…

My Dad: “Your brother didn’t have to pay in and he made quite a bit more than you last year.” (….he’s being generous and trying not to make me feel bad when he says my TWIN brother made “quite a bit more”…he makes over double, clearly he chose a better career path)
My good friend: “Dear, we made practically the same amount at our full time jobs and made the same amount as bartenders and I’m getting money back.”
My other good friend: “Wrong, never do your own taxes. Go to H&R or something.”

Ok…so after enough comments like this I realized that I clearly did do something wrong. So I decided to make an appointment and head down the street to the nearest H&R Block…where I sat for an hour and ended up paying $150 for them to tell me I did my taxes correct after all and I STILL owe the government too much money.

Seriously? My dad’s advice “You must have claimed a 1. You need to get that switched.” Taking his advice, I stopped by our HR office to find out what was going on.

“Well you must have claimed a 1,” says my HR lady, confirming my father. “The government takes fewer taxes out when you claim a 1, which is why you have to pay back. However, that still seems like a lot for you to pay in.” She hands me the appropriate paper work…and I switch my “1” to a zero…as I will not allow this to happen again next year.

Just a minute ago she calls me in her office to have a little chat. “Tasha” she says to me “you claimed a 3. They were barely taking any taxes out of your paycheck and that’s why you’re paying so much back.” A 3!!!! A 3 exists on a tax claim? I didn’t even know you could claim anything beyond a 1. Where did a 3 come from?! And how could I have claimed it if I didn’t even know about it?! What on earth IS a 3???

So here’s the bottom line. Back in January, rather than losing our jobs, our company gave everyone a pay cut. Ok…not a big deal. I’d rather have a job than none at all. But now…looking at the big picture, I just received my second pay cut…going from a 3 to a 0 on my federal taxes. Two pay cuts within the first three months of the 2009.

Dear lord…this is going to be a tight year! Maybe I can make some extra money selling fanny packs on the corner of a street.