For the first time ever I/we finally owed the IRS money come tax time. I use to think getting a big return after efiling was awesome since it was like free money, but then I was reminded it was my money all along. I just loaned it to the government for free all year.Suddenly, a couple thousand dollar return was more depressing than cool. Last year we got back a tiny bit, couple hundred dollars I think. But this year, we finally turned the table and owed instead of being owed.
We wont share exact amounts, but we had already paid $13,000 in taxes and had more than a couple thousand dollars left to pay. I’d say I am deeply troubled by this obligation, but I anticipated this would happen back in May so we had money set aside just for this purpose.
Some people thought that since we owed more than $1,000, we would possibly face a penalty for underpayment. While that can happen, the penalty doesn’t apply to us since we had already paid more in 2011 than we did in 2010. Couldn’t imagine the pain that comes with owing thousand of dollars, and having to add on another couple hundred in penalties.
We dream of the things we could have done with the taxes we paid last year (like bought a brand new car), but at the end of the day we love America and we know it takes taxes to keep the system running, the roads paved, and the military doing military things. Taxes are a necessary, confusing, and very frustrating part of life. Not to mention they are terribly boring and in no way, shape, or form sexy.
Have you filed yet? Did you get a refund or did you owe? Fill in the blank, Taxes are ______.