Tax Time - IRS Good! - State Bad!

With tax day approaching fast, it is time to post about my taxes. In addition, my joke of the day site, is posting tax jokes each day until April 17.

So haw did I fare on my taxes? Federally, I did OK, but the state not so well. However, I did better on the state level than I did last year.

I made almost $8,000 more in 2006 than I did in 2005

Federal Taxes:

• My 2006 taxes netted me a refund of $226, compared to balance due of $44, in 2005.
• It will be nice to see my IRS debt, to be reduced again.
• I need more deductions, to lower my taxable income.

State Taxes:

• I owe on my 2006 taxes I owe $51, compared to the $119 that I owed in 2005.
• This payment hurts, as these kind of payments hurt everyone else. Next year though, I will be better planned and have the money in savings.

I mentioned in a past post that I plans for insulation in my attic. I still plan to give you details in the near future, but I need to come up with about $500 so I can get insulation blown into my attic. This will net me a credit on my 2007 taxes, thus lowering my taxable income this next year. Not to mention the energy I will save on my home heating bills, this next winter. Something that is hard to do, when I am so deep into debt. Speaking of which, somehow some way, I want to get ALL of the credit card paid off before May 5. Anyway, that's my current tax situation. I will be updating my IRS debt situation in a few weeks, when I get my update letter from the IRS.

A favorite tax joke

The local bar was so sure that its bartender was the strongest man around that they offered a standing $1000 bet. The bartender would squeeze a lemon until all the juice ran into a glass, and hand the lemon to a patron. Anyone who could squeeze one more drop of juice out would win the money. Many people had tried over time (weight-lifters, longshoremen, etc.) but nobody could do it.

One day this scrawny little man came into the bar, wearing thick glasses and a polyester suit, and said in a tiny squeaky voice.

"I'd like to try the bet." After the laughter had died down, the bartender said OK, grabbed a lemon, and squeezed away. Then he handed the wrinkled remains of the rind to the little man.

But the crowd's laughter turned to total silence as the man clenched his fist around the lemon and six drops fell into the glass. As the crowd cheered, the bartender paid the $1000, and asked the little man.

"What do you do for a living? Are you a lumberjack, a weight-lifter, what?"

The man replied, "I work for the IRS."