For the first time in almost four months, I received a full time job paycheck last Friday.
Even if it is a large company (which it is), even if it has plenty of money (which they do), even if I am there for a full pay period (I was), I still always remain a bit hesitant until I see the money appear (Now; once upon a time it was a physical check). But sure enough, it showed up precisely when and where it was supposed to.
The next major thing, of course, is the amount.
Taxes are something I am still trying to figure out. One of the reasons, of course, is simply that New Home 2.0 has different taxes than New Home. The second is that I have never quite been as good as I might be about "figuring" the correct amount of taxes to have pulled out.
I was scarred, if one might use the word, years ago when I was at The Firm and I received my tax bill. The bill arose from the fact that I was an independent contractor and thus no tax money was pulled out Suddenly I had a tax burden that we were able to pay with some effort - those "great paychecks" came at a cost (Although I was fortunate; Himself had a higher tax bill and had put nothing aside to pay it). Ever since then, even more so than before, I made the commitment that I would only, ever, make sure that I never owed one thin dime for taxes.
Yes, I know all the things - that me "depositing" my money with the government is effectively an interest free loan, that I am effectively "losing" money by not taking that extra and appropriately using it, etc. Yet for me - and really us - the relief of not having the "You Owe!" come up in your calculations is a stress reliever of immeasurable proportions.
That said, I do fuss a bit that either I have pulled not enough out or too much out. It is a little hard to know this year, given the fact I am starting late and have some income (Produce (A)Isle, Unemployment) which is a lesser amount and for which minimal taxes were pulled. So there may yet be some adjustment.
The important thing, though, is that I actually have a job that pays. For which I am incredibly thankful.
Having a full paycheck and stressing about tax deductions?
ReplyDeleteAs my Grandmother would say "Such A Problem".
Assuming you did taxes last year, you can easily figure out the deductions or have a tax preparer help you for a small fee.
That's what I did when my Social Security kicked in this year. Had Maya do a forward projection and we adjusted our with-holds as to come safely under the IRS Penalty for insufficient with-holding.
Congrats on the full paycheck, don't spend it all at one place :-)
Truly a first world problem, Michael. That said, that one year of having to pay is burned into my brain - especially as it was in the time of real estate where we had nothing coming in. We paid it, but that was really the final financial straw for all that followed.
DeleteI can pretty well estimate my portion of the taxes this year (given there is a relocation package, there is a slight complication). Sadly, it still seems like a lot.
Thanks for the congratulations! I will try to hold something back for me.
Congratulations on the full pay. Every time we go to the store, we are reminded of why we have to earn the $$$. Everything is pretty expensive, and making hard decisions to pay for this rather than that can eat away some time.
ReplyDeleteThank you.
DeleteYes, going to the store is shocking anymore. One thing I am trying to do is, as we adjust to New Home 2.0, reconsider how money is being spent. I have had the uncomfortable realization that my major days of income are past me, and I need to plan accordingly.
Tax withholding from paychecks is a relic of World War II, and I think the obscene growth of government since then is related to our not having to write an increasingy horrifying check every April. Our money is confiscated before we ever see it, so we don't realize the size of the crime.
ReplyDeleteWarren, I cannot disagree with you in the slightest. If people received all their money through the year and then had to pay at April, it would only happen once. Now, it just becomes a nusiance.
DeleteHoorah! Paycheck! Full pay period check!! Time to become the Ant again TB..... pay yourself first (savings) and then spend with abandon on those luxuries like food and health insurance. Congrats on becoming a working stiff again........ :)
ReplyDeleteNylon12, no joke!
DeleteWe have the beginnings of a new budget (always a challenge given I do not know the final amount quite yet), and the realization that at least all of one and part of another paycheck will be consumed with the basics of living is a little disheartening.
To quote Erasmus, "If I get a little money, I buy books. And if I have anything left over, I buy food and clothes".
Having once owed enough money to the IRS that I was penalized for not withholding enough, I have been like you. I try to overpay just a thin dime so that a small refund is in order. It rarely works out that way with my wife's highly variable pay, but it has been on the refund side for the last 10 or 15 years or so. Yes, the government is using my money for free, but it saves the stress of a big bill as you mentioned. Plus I rather like e-filing and not having to mail anything in. But saying that, for the first time in my life, one of my forms was filled out incorrectly and didn't get the refund that I should have. So now I am working on amending my taxes and getting those mailed off this morning. It is raining outside and cold, so it seems like a good day for deskwork.
ReplyDeleteEd, the only reason we were not penalized was that we got the "First time pass" rule; do it a second year and it is a fee plus quarterly payments. And I do not want to do quarterly payments (let alone the fee).
DeleteI will say that one of the downsides of filing electronically (it seems) is that if you have to amend a tax return, it takes forever.
Congrats, my friend!
ReplyDeleteThanks John! Yay for actually having an income to tax!
DeleteHappy for you, TB.
ReplyDeleteYou all be safe and God bless.
Thank you very much Linda.
DeleteI said a little "Yay!" when I read you got your first paycheck from the new job, TB. Hubs feels exactly as you do when it comes to taxes. At first, I wasn't convinced it was a good idea, but I came to not mind it. We prefer to receive what feels a little like a bonus when we get a tax refund, as opposed to what feels almost like a penalty the few times we've had to pay more than we expected come tax day.
ReplyDeleteBecki, I like the feeling of a bonus (even if, I suppose, it is my own money). It just mentally makes me feel better.
Delete