Recently I alluded to my trepidation at visiting my tax man. I love my tax man, he is always my Valentine and often he ends up netting me a sizable refund. But I knew I was in trouble this year.
You see, before I came to terms with my debt in 2010 I made a big financial boo-boo: I cashed out a 401K. It was not a ton of money (sure it might have become a ton of money 40 years from now, but I was worried about the here and now) and I prepaid the taxes (or so I thought).
I did this in early January 2010, the money is long spent and when I got the tax paper work I realized they had failed to take out any state tax. I am a complete dolt when it comes to financial matters so I fretted terribly these past few weeks about what I was going to owe.
I also felt bad sitting down at Gary's desk yesterday and confessing my financial sins like the Catholic school girl I once was.
When all was said and done, I only owed the State of Massachusetts $50 and I had overpaid the penalty to the federal government on the 401 K so I am getting a small chunk back from them that will cover the $50, the fees for my Valentine Gary and leave me with about $200 to play with.
This would have been devastating a year ago. Before my budgeted life I needed a 4 digit refund check to survive, but this year I can put half of the $200 in savings and spend the remainder on yarn or wine or a pedicure or whatever I want and not feel guilty about it. Amazing how my life has changed.
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