Saturday, January 28, 2012

Taxes are done

And the news isn't what I'd hoped for. Actually, what I'd planned on. We've always gotten a pretty big refund. I know that's not what the money experts advise, but it's what we do. Mostly because our expenses vary so wildly that we're afraid to change anything lest we owe a boatload of money come April. I knew that we were losing DD as a deduction this go-round. She's been on her own for more than a year now. I also knew that for the first time in a few years, we didn't have any college tuition expenses we could count. What I didn't know is that we could no longer claim our 20-year-old son as a dependent. He left college after a year and moved back home where he has been cobbling together part-time jobs until he's eligible age-wise for the full-time job he is after. Because he's not in school and because he earned more than the around $3,000 threshold, he is considered head of his own household. Despite the fact that he lives rent-free in ours. Aside from health care and transportation, we absorb his basic living expenses. Just doesn't seem fair.

The good news is that we do not owe anything. The bad news is that the refund (just a few hundred dollars) isn't nearly big enough to cover what I had hoped it would cover. Namely a chunk of DD's wedding expenses. Given that DS is graduating high school this year, too, and my parents' 50th anniversary is coming up, we really could have used some help. I'm trying not to panic here.

It's back to the drawing board. I'm going to have to cut some already dull corners even more. What fun.

Sarah

11 comments:

  1. Ugh, sorry for the bad news. You would think you could claim your son, given that you support him. I don't understand how the tax laws work but it just doesn't seem fair. Oh well, atleast you don't owe, right? Good luck finding the money though, I know what that's like.

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  2. Drat. We will lose our second daughter next year also. We will also lose a college deduction. So we will have to save I think. I hate it when you expect a lump sum and don't get it. At least you don't owe money.

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  3. aww I'm sorry, that stinks about the taxes

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  4. That truly sucks!!! We lost the two oldest boys altogether this year that was a big hit.

    You will come up with the money somehow because we are all rocking 2012. Has your daughter though about what type of wedding she is having..big or small?

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  5. That happened to me last year! Kazi needed all of her tuition amount to get her income down - she earned too much while also attending university full-time. I took a bit hit and was counting on a big refund. Can your son contribute a bit of rent money to help you out?

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  6. Hugs. That sucks! I always have challenges estimating our taxes (complicated investments) & just ran the numbers today & it's not pretty.

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  7. It sucks to lose someone as dependent, even when you're still providing for over 50% of their living expenses. Perhaps if they have a refund, they can split it with you?

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  8. that is a bummer that you will lose most of your return - BUT this is okay - it is always better then owing. Maybe just throw that into your savings for everything that you have going on this year & just SAVE - put your debt reduction on hold for a bit & save for upcoming expenses, the fact is, they are going to happen if you are ready or not & it is best to pay cash then to add to debt!!! Good Luck

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  9. That's a bummer, Sarah. I've been there before, and it's hard when you are counting on a good refund. We are getting nearly $5000 back this year (which was a surprise), but I'm not changing anything because we lose my daughter in a deduction next year. I'm afraid we will 'owe' next year. Weddings and 50th anniversaries can be costly...I've had both. I hope your son is able to get a full time job and help out with the rent a bit, even if it's not much. (By the way, I charged my daughter $250 a month before she was married...with the extra heat, water and food, it was necessary!)

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  10. At least you don't OWE money so that is really a good thing. Bummer about the kids though--we were pretty sad when our little deductions moved out too!

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