Well, I did my taxes this weekend, and for the first time in 30+ years I’ll be paying the federal and state governments.
I am not pleased.
Granted I had one major difference this year which really fucked things up, but even before putting that into my tax docs, things weren’t looking great.
The major change for me this year was I had to pull money out of my 401K to pay off my mom’s credit card debt. Having to do this has had four massive impacts on me.
1- there was the tax penalty assessed at withdrawal.
2- then this added to my taxable income, so it was taxed again at federal and state levels.
3- it has caused me to owe money, further wiping out my savings
4- it was enough to push me temporarily into a tax bracket where I no longer qualify for a homestead property tax refund.
So this year I’ve just been totally screwed and as of April 14th have very little savings left.
I’m still trying to figure out a way if I can claim my mother as a temporary dependent or something so that I don’t have to pay a penalty for paying off her debt. But I’m not holding my breath.