Friday, April 8, 2011

Taxes... one down, one big one to go!

So today we paid our state taxes off! $1,794. Done. The check is sent in and this bad memory is behind us! I felt good writing the check out and dropping the envelope in the mail. Now we're focused on paying off the IRS. I can only imagine how good that one is gonna feel! It's going to take a little longer to get that one in since it's $5,272. I plan to send in what we can before the 18th and then our stretchhhh goal is to pay the remainder with my last check this month on the 29th. However, that may be challenging with our upcoming move (and the costs associated with that) so luckily we have some time since our grace period takes us until the beginning of June.

I'm hoping this good feeling continues and we stay motivated to follow our budget and continue to pay things off! Now that we have an end date (December 2012) there is some light at the end of the tunnel.

Lesson Learned : Don't mess around with your tax withholdings, it's not worth it! You'll probably end up owing later...


  1. Oh I agree so much with your last line. We didn't play much with our withholdings, but we both claimed married in our W4s and with our incomes combined we jumped to a higher tax slab. Long story short, we owe $7000 to the IRS. I feel very upset about this because this is coming out of our savings. Had we adjusted our withholdings better, the tax would have come out of eating out, buying things and all other expenses that happened because we thought we were earning more. Like you say, it is time to put this bad memory behind us!


  2. Great tip. I wont mess with our withholdings!

  3. It's the same here in Canada plus penalties too so it really isn't worth it to mess with the tax man. You are doing amazingly well getting your debts paid off - you'll feel 10 pounds lighter when this is done :)