April 12, 2008

Tax Season

Most people love this time of year because they anticipate a tax return.

Not us.

I DREAD this time of year. I put off doing our taxes as long as possible. Not that I actually do them, but I just don't encourage Kyle to do them. I suppose we should just do them Feb. 1 and get over the shock rather than living in dread for 10 weeks, but hey.

So, we finally did our taxes yesterday and it was about what I expected. We got enough from State to pay Federal. Woopdedo. At least, we don't have to pay anything! And, after the stimulus that is expected to come in June, we'll actually be up some money. So, I'm not going to complain.

Because Kyle is a pastor, we get a "tax benefit", which, I am beginning to see as not much of a tax benefit. They (the IRS and everybody you ask) say that our "housing allowance" ($2,000) is "tax free". If I hear another person say that, I'm going to scream! IT'S NOT TAX FREE!!! We owe "self-employment tax" (social security and Medicare) on it. Thus, it not being tax free. People say, "it's only 15%". DO THE MATH, PEOPLE!!! 15% of $24,000 a year is $3600!!! That is not taken out of our paycheck and that we owe to the federal government.

Needless to say, I'm thankful that we didn't have to pay anything, but disappointed that we're not getting much back.

2 comments:

jacquelyn said...

justin is technically self employed so we have to pay all that stuff too. the government sets up estimated payments for us though and that is nice so we can just pay a little every few months. do you guys do that? we didnt pay enough last year (because we forgot about bonuses and such) but we got to write off valen! so that evened it out....
i didnt know anything really about pastors taxes, i just heard that they dont pay much, but that is not what it sounds like you are saying, bummer. but also am glad you dont owe anything AND yipee for a failing economy! (=

cheryl said...

that's a bummer! having Bryce and our house helped us a lot.