“We’re getting a refund. We’re getting a refund” (to the tune of Na Na Na Na Boo Boo)
We NEVER get a refund. Well, OK, last year our federal refund was about $500, but we owed the state $280, so we never get MUCH of a refund. The hubby is self-employed, which I believe I have already whined about here. We do not set money aside for quarterly tax payments, since we would be too tempted to tap into it when money gets tight, as it always does. Our solution is to take his taxes out of my paycheck. Although we have children, I take zero exemptions; plus I have an additional $250 per check taken out for federal taxes and $75 taken out for state taxes. Since we file jointly, this seems to offset what he would have had to pay. This gets us off the hook as far as paying quarterly estimated taxes for him goes, without incurring a penalty.
The hubby’s income has TANKED during this recession. Yes, that’s right. I called it a recession. I don’t care what economists say. When the value of our home has dropped 30% in the past two years and our family income has dropped about 25%. Meanwhile the cost of gas, food and utilities has gone up dramatically, that’s what I call a RECESSION!!! Eh-Hem…
I had a point. WE’RE GETTING A REFUND! That would be the one bonus to making far less than anticipated. Since the amount we paid out for his income taxes wasn’t tied into what he was currently bringing home, we over paid and will get back about $4,000! Plus! About $800 from the state!!! Of course this news makes me act like a little kid who has been promised she can go for an ice cream cone “Later..” When? When??? When do we get it??? Can I get it now? Huh, mom?
I found this handy dandy refund payment schedule from the IRS. We should be getting our refund on April 11th, since we e-filed on the 31st. ALSO! This Stimulus Payment Schedule tells us we can expect our economic stimulus payment to be direct deposited into our account on May 9th. Not that we are going to stimulate the economy with it. With any luck, we’ll have some money of our own by then and can use it to pay down debt.
Sorry economy, you’re on your own.