The Tax Man Cometh

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ImageWell, it’s that time of year.  That time of year where the energy crackles, the tension is palpable and you can cut the tension with a knife.  It is sexy, bold, brash and sassy.

Tax time!

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.

Dammit!!!

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!  🙂

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