GI Jane Finances

February 5, 2008

Tax man cometh

Filed under: Death and taxes — gijanefinances @ 1:42 am

I finally filed my taxes for 2007. I secretly hoped for a refund, however, my W-4 was adjusted to prevent that from happening. In the past two years, I received refunds ranging from $2,400-$4,000. It is very disgusting that single people have to pay a higher tax rate than married people. With the divorce rates as they are, you think the government would reward people who did not make bad choices instead of punishing them. If I did not own a house, even though I contributed about $11,000 in my TSP, I would owe the feds a couple thousand of dollars. According to the tax table, for a single person in my tax bracket, I am suppose to pay almost $10,000 in taxes. Since adjusting my W-4 with 10 allowances, I paid $8161 in 2007 to the government. Ridiculous.

The only good news is that my basic allowance for housing and subsistence are tax-free. My allowances were also eligible for the sales tax deduction. Not sure how I will cope when I eventually start working in the civilian sector and have my whole check taxed. The free health care in the military also alleviates me from paying for health insurance which can cost hundreds of dollars a month.

I also opted not to pay an accountant $170 to prepare my tax forms. I was nervous in the past due to owning rental properties. This time, I used Turbotax premium through USAA for $35. So, the grand total of what I ended up owing the government is $194. Woohoo!

Look forward to depositing $406 from the tax stimulus check.

GI Jane

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