When I received my first tax refund in 2003 (for 2002), I was overjoyed because my ten-year owing streak to the IRS was finally broken. It definitely made the grief of owning a house woth the effort.
The refund streak ended this Spring (for 2005). Although our combined income declined by ten grand, Somara’ employers pay less than her previous job, thus less is withheld. Yet the government adds our salaries together into one giant lump to determine what we owe. Can’t win there. You can have more cut out to cover the taxes but it’s not enough to make ends meet or you can take the money now to keep the wolves away only to get it later from the IRS.
It was nice while the three-year run lasted. I’m not going to bitch about it anymore. Why? Taxes in the USA are still much lower than our Western counterparts and you get what you pay for: lack of healthcare, crumbling infrastructure, corporate-owned media and elections, etc. My one friend in France did the math for his current home versus the US. Turns out that despite the higher taxes there, he still comes out ahead because of fewer hidden costs, namely healthcare.
This year will probably pan out better. Somara has work with HEB for now in addition to the freelancing she does for her father’s business. There won’t be any cool boosts to aid in us in a refund outside of the mortgage interest, property taxes, student-loan interest and charitable deductions. I think 2006 will be more modest like my first refund in 2003.
For now, it’s cutting back, penny pinching and working overtime to kill it off. The IRS won’t get their check until the last possible moment too. They’re never in a hurry to pay me back, let alone answer questions politely so why should I be forgiving.