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Irrationally Nervous


MeredithRX

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OK, I am going to admit, I am irrationally nervous about doing taxes this year. In past years, I never had a problem with it. I plugged in the numbers and always ALWAYS ended up with somewhat of a refund. Even years where I was aiming to break even. Things were good.

 

Then I got divorced. And last year, for the first time, I owed. And I owed big. And there really weren't significant changes besides going from Married to Head of Household. I was devastated and it wiped out my savings.

 

This year, I'm nervous because I really don't have a good idea of what to expect. Things are so different this year. I did change my w-4 slightly, but also have had extra taxes taken out of each check because of our babysitter and her taxes. I'm nervous about what the "Nanny Tax" will do.

 

I've also had tons of medical expenses. I generally do every year, but this is the first year I've maxed out HSA contributions and dispersements.

 

I don't know. I just don't know what to expect. The prospect of another "Suprise! You owe $3K when you thought you'd get a refund!" year just makes me sick to my stomach...

 

Thanks for letting me ramble....

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Can you run an estimated tax return using last year's program?  It certainly won't be exact, but it might let you sleep a bit better knowing what to expect.

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I may end up doing that.  I do have the 2015 Program already.  I was fooling around with it last night but every other screen still says it's not ready.

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I'm confused as to why you would owe more after your divorce.  Head of household is awesome, and if I remember correctly you pay alimony which is all tax deductible.  Plus childcare expenses etc....are you sure last year's taxes were correct?  Of course I could be missing something.

 

Don't panic.  Whatever it is, it will be.  And you'll deal with it.  Take a deep breath.

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After you do your 2015 taxes, plan your 2016 ones since you're going to be doing the 2nd job -- if it's a 1099 position, you might want to increase your withholding from your fulltime job so you can have enough withheld thru the year if you don't want to pay quarterlies.....

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I hate taxes too, sorry you're taking a hit. But it is what it is and worrying and anxiety won't change anything. The good news is that you have 4 months to calculate, plan, and save. I hope you are pleasantly surprised.

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I'm confused as to why you would owe more after your divorce.  Head of household is awesome, and if I remember correctly you pay alimony which is all tax deductible.  Plus childcare expenses etc....are you sure last year's taxes were correct?  Of course I could be missing something.

 

Well, the majority of the problem is that my ex didn't work, so my income married was the same as my income as head of household.  I was in a lower tax bracket married with my income than I am HOH with that same income.  Additionally, I didn't have ex's medical expenses to use as deductions.  I am only allowed to claim 2 of my 3 children as dependents per the divorce settlement (he wanted one so he could be HOH too).  But I make too much to get a credit for them anyway.

 

My childcare expenses were all over the place last year.  There were no reportable expenses (different caregivers, all under the table, etc...).  Not the best way, but the reality at the time.

 

And, because of the money issues, I couldn't afford my own medical treatments, so I skipped them.  That left me with fewer medical expenses to deduct as well...

 

Anyway, it just snowballed.  We'll see what happens!

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