How do you cope with tax inequality?
April 17, 2012 5:27 PM Subscribe
I'm broke, can't find work, and owe more taxes than Bank of America. Help me deal with the financial and emotional fallout.
posted by anonymous to Work & Money (17 answers total) 2 users marked this as a favorite
I know you're not my accountant, (BECAUSE I CAN'T AFFORD ONE) but can someone calmer with better math skills please help me figure out what I'm doing wrong?
I lost my job and have been living on unemployment insurance. I'm grateful to have it, but it's a loss of nearly 2/3's of my previous income.
Despite this, I owe $1500 more in federal income taxes than the previous tax year, when I was employed. That's a debt equal to about a month's income and I haven't even looked at my state taxes yet. I'm filing single income in California.
I already stretched paycheck to paycheck and I'm beyond resentful, but I'll set up a payment plan and start having taxes withheld from my UI payments. But I still feel like this can't possibly be right.
Are there secret deductions everyone but me knows about? Is everyone else smart enough to have an 'arrangement' with a tax preparer? Am I the only fool with a low five-figure income paying high four-figure taxes? How do I get my financial house in order? What do I do with this seething resentment?
I find it really hard to believe that people living paycheck to paycheck just suck it up and pay the bill. What does everyone know that I don't?
Any tax tips, referrals or soothing words you can provide are appreciated.