Paying taxes on $10,500
April 11, 2008, 11:58 am
Filed under: Life

I’m so upset right now.  I worked for AmeriCorps for all of 2007.  I only got a few dollars in taxes taken out of my bi-monthly paychecks, and state taxes were never taken out.  I just had my taxes done by a free program and it looks like I owe $500 in state taxes and $300 in federal taxes.

I have $1,000 in my savings account, and part of that is because I saved knowing that I would have to pay more taxes but I only estimated around $300.  I can either wipe out my savings or set up a payment plan with the IRS and pay interest.  Did I mention that I’m going to graduate school so I have to move to another state in August?  I really needed that savings.

My life isn’t bad at all, but this is the third time in a year that I’ve opened a bill and cried feeling helpless.  I’m not complaining about taxes at all (other than where tax dollars are currently allocated, but that’s nother issue).  I’m just upset about this fluke where I didn’t get enough taxes taken out of my paycheck and I have to pay it all at once.  If this had happened last tax year, I wouldn’t have stayed for another year of service.  (In the previous tax year, I had a college work-study job for 6 months and then joined AmeriCorps, so the taxes I paid earlier evened out)

Oh, and I don’t qualify for the low income tax credit because I don’t have a kid.


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