Because I do not own a home or much in the way of investments, I still my own taxes on a 1040 using Turbo Tax. I had to file in two states this year because I moved for work and I had a total of 4 W-2s. And I had to pay in for the first time ever, to the tune of $1,000.
The reason my taxes were so high was because I had to cash out a retirement fund in the state I used to live in. It is the only state in the Union that does not allow teachers to transfer their state retirement in any way, shape or form. I used it to pay off my credit card debt and although Dave Ramsey would NOT agree with it, I stand by my decision.
Paying off that credit card debt means that I am free from any interest loans for the moment. I also consider that retirement to be blood money because I worked a job I was really, REALLY unhappy in to get it. The job almost drove me to suicide but thankfully I am here to tell the tale. Really, it is all for the best.
Thanks to my Financial Peace class, I had $1,000 in the bank and I will cash flow to replace my emergency fund. I am selling a lot of stuff on eBay and because I was ahead on my car payments, I will use the car payments to replenish my emergency fund.
I do not plan to have to pay in next year, but I am grateful to Dave Ramsey’s plan that allowed me to fund this emergency without too much heartache or grief! 🙂