Finance Gets Personal

There’s been a lot of stuff going on in Finance Gets Personal land, so much so that there hasn’t been much time to write!

So, let’s get caught up, shall we?

The Vacuum
While on the hunt for a cheap vacuum, we managed to break the vacuum we’d been borrowing from my in-laws. Can you freaking believe that?!?! We think we may have figured out why we are the vacuum serial killers though.

My stepson has a lot of Webkinz, which are little stuffed animals that you can also play with online (or something - I’m too old to understand this crap). Sometimes, our dog kidnaps one and it becomes his new toy. AND, since our dog destroys all his toys, we’ve discovered that Webkinz have a little packet of tiny plastic balls inside of their stuffing. The packet gets chewed open, and tiny plastic balls are lodged in the carpet throughout the house. We think that when the vacuum sucks these up, they melt and cause major problems!

So, no more Webkinz for the dog!

We went to Target to buy the in-laws one of the vacuums that was on clearance there for $65, but when we called to see which one they wanted, they insisted that they don’t need one. They’ve been replacing all their carpet with hardwood, and only their bedroom is left. They’re planning on replacing that within the next month, so I guess we got lucky!

So, back to our vacuum. While I last wrote that we were going to buy a cheap one and use the American Express in order to extend the warranty, we ended up getting the Dyson Animal I wanted through Frys. It’s refurbished, and I’m not sure if the warranty extends beyond six months, but it was only $206 (including taxes and shipping), included all the attachments and arrived just like new. I LOVE it so far!

My Sister’s Financial Peace University Classes
I’m really not sure how this is going because we haven’t talked about it since the first class. But I’m going to be seeing her tomorrow and hopefully will find out more then. As I reported earlier, her husband is going with her and they are at least halfway through baby step 1 ($1,000 emergency fund).

Layoffs at My Husband’s Company
While the layoffs were originally scheduled for March 12, that date was moved up to March 6 (today). But they found out yesterday that his group was not affected by the layoffs at all! So that is wonderful news!

Meanwhile, my company announced that we probably won’t be having quarterly bonuses this year and were getting 3% raises across the board (we wouldn’t have gotten anything, but they felt bad about not giving people raises last year either). However, we are currently SWAMPED with new projects, and should be until at least June.

So, it looks like the ramen noodle budget will not be necessary. We’ll probably be moving most of the money we have in savings (beyond the $1,000 emergency fund) to the second mortgage balance in the next week or two.

Taxes
By stalking SlickDeals.net, I found a free download of H&R Block Tax Cut with free e-filing and used it to prepare our federal taxes. We’ve already received our $635 refund and can now submit our state return, which will swallow that $635 plus another $55. Did I mention we have to file two state returns? I’ll be doing the second one on paper so we don’t have to pay to download an additional state (not sure how we’ll come out on that one, though last year we got back $130 or so).

I guess I should get on that, so things don’t turn out like last year.

What I’ve Been Doing for the Past Month (i.e., Spending Money)
I’ve probably mentioned this before, but I have a “life list” of things to do before I die. Some of them (play blackjack in a casino) are easier and less expensive than others (own a photography studio). One of the items on my list is to have an Oscar party. So, I did!

Of course, being the freak I am, everything had to be on theme. I had food and drinks for each movie, a ballot contest with prizes, a red carpet and decorations, gift bags (hello, drugstore stockpile!), paparazzi, etc. It was fun, but expensive (for example, The Curious Case of Benjamin Button featured caviar with creme fraiche on toast points and vodka shots)!

Then, I had a business trip (love getting mileage reimbursement for traveling to the airport, by the way) and party-planning for my stepson’s upcoming birthday (they’re going to a movie theater to see “Mall Cop” and play laser tag).

So, things have been busy! But I think we’re all caught up now, and I look forward to posting more soon.

Yesterday, my husband sent me the following email:
Despite not getting raises last year, it appears I made more money than the year before. That going to ruin our taxes?

I replied:
I don’t really know. I think I might have made a little more too. Last year I think we about broke even on the refund from federal and amount owed to state. I donated a lot more stuff this year too.

Given that I didn’t actually know how much money I made last year, I decided to finally open the envelope with my pay stub in it.

$55,816.

Hmm, I think that’s better than last year.

So, when I get home, I ask, “How much did you make last year?”

$65,000.

Wow, that’s like $120,000!

I think we made about $105,000 in 2007. My husband didn’t get a raise last year, and I didn’t get a raise until July, but I guess our bonuses were bigger than the previous year?

However it happened, I guess it’s a good thing. But now I’m a little worried about what our taxes are going to look like. Despite both of us claiming zero exemptions, somehow our state taxes are always a mess and we usually owe $600-$800 to the state we work in. Last year was only $180 or so, but now I’m scared!

I realize that probably doesn’t make a lot of sense since the more you make, the more you pay in taxes, so everything should work itself out. But I’m sure it’s still screwed up somehow.

At least the next tax bracket doesn’t occur until $131,450.

I’m also feeling a little lame now in “only” having paid off $26,951 in debt last year given that our income went up by $15,000. I’ve got to sit on this one for a while to try to figure out why we didn’t pay off more, since we’ve been living basically the same lifestyle as before.

Photo Credit: My Bling by nicora, used under Creative Commons licensing.

On Friday, we received our $1,500 economic stimulus payment and a $213 state tax refund.

So, being proud Americans, we spent $3,467 on a new heat pump and $674 on a new hot water heater before the deposits even had a chance to hit the bank.

No need to thank us, America. We’re just doing our part to save the country…and not bake to death this summer…and have a hot shower that lasts more than five minutes…

Photo Credit: Be Patriotic or Else by Mike Licht, used under Creative Commons licensing

I was so proud of myself last year.

In 2007, my big, fat federal refund was in my checking account by February 15. It was the first time I hadn’t waited until April to do my taxes. Believe me, I know where the city’s post office that’s open ’til midnight on April 15 is.

This year…not so much. Once I figured out how much I owed/was getting back, I put my taxes in a pile on the floor until April 13. And you know how that went…

So, boys and girls, it’s time to get organized for next year’s taxes. It’s actually really easy (or, at least according to my definition of “organized.”)

Step One: Find a manila folder, basket, cookie tin, etc., and label it “2007 Taxes.”

Step Two: Put all your tax-related receipts in it as you acquire them. Look at your 2006 tax return to see what you had - receipts for charitable donations, medical expenses, mileage…you get the point. Then put your highly efficient organization system somewhere that’s easily accessible so you will actually use it.

Step Three: Set a date to do your taxes. Yes, right now. Employers are required to send out W2s by January 31, and my Outlook calendar says I’m free on February 9, 2009, so I’m going to make an appointment to start my taxes that day. I’ll set a reminder for the following week to finish up. Voila! Right?

(This post was included in the Carnival of Personal Finance, hosted at The Happy Rock.)

Ah, done at last…until we’re audited, that is.

Actually, I think we did our taxes correctly.  We finished last night after work and I even had enough time to watch Desperate Housewives before I went to bed. 

It’s such a good feeling to be done!  We didn’t pay any money, and, instead of owing $1,000, we’re getting a net refund of about $200 - enough to pay for the sump pump we had to buy this weekend.

Perfecto!

Photo Credit: let go by dlemieux, used under Creative Commons licensing

Sorry my posts have been a little irregular lately, but I haven’t been eating my Activa have been trying to finish my taxes. 

I thought I was almost done, but it turns out I hadn’t started the state forms (I have to file two state tax returns since I live in one state and work in another).  Also, I screwed up the federal return, so we started over last night.  At 2 a.m., I was basically begging my husband to let me push the button on TurboTax online to file everything for $170 or whatever it would end up being, instead of trying to transfer everything to paper (you see, we’re being cheap and doing it in TurboTax online - which is free until you hit the magic button - and transferring it to paper forms and mailing it in…this is a pain because you can’t see the actual forms in the program).

Of course, our paper results and TurboTax’s aren’t matching for the states, but we think we are the ones doing it right.  Oh God, what have I gotten myself into?  Hopefully we’ll figure it out tonight.  I’ve stopped talking about it at the office, because everyone uses an accountant and is like, “It’s totally worth it, and I don’t have to worry if it’s right or not!”  Screw you guys.

The good news is we’re going to come out slightly ahead instead of owing $1,000 (I think). 

If you haven’t filed yet, you probably aren’t reading blogs right now, but good luck!  We can do this!

Photo Credit: stress by vidrio, used under Creative Commons licensing