This is how the IRS works:
A. How much money did you make last year?
B. How much money do you have left?
C. Send B.
I sincerely believe that we were ripped off this year. We had to pay a rather hefty sum this year, the first time in ages. Why? Because the Federal government really messed us over.
First of all, when I worked for the Department of Defense, I was ordered to get my bachelors degree in business operations. I told the chief that I couldn’t afford it. He said, “What are you worried about? We’re paying for it anyway.” He said to pay for the classes and as soon as I finished each one, to submit the transcript and as long as I passed, they would reimburse me.
I did everything he asked, carried a 3.9 average, but what he failed to tell me that some of the classes were deemed non-reimbursable. In addition, I was never paid for ANY of the classes, because they suddenly had no money. I know!
So, I had about $12,000, in student loans that I was now stuck with. I’m still very angry about it because when I had to go on SSDI (permanent disability), I received a letter saying that my loans had been forgiven. I was very excited about that.
When we went to get our taxes done, we discovered that the amount of money discharged had to be counted as income! Incredible. So, we ended up paying for them anyway. That sucks!
In addition, the disability I receive is considered taxable. What?? I’ve already paid taxes on that with the regular paychecks I had earned throughout my life. Insane! They are double dipping! Very unfair.
There may be something I can do about it, but if the DOD does end up paying me, maybe the IRS will allow that as a deduction. There’s more, but I’m sure we’ve all had ridiculous experiences with that government agency.
One final story. Years ago, I owed taxes which I couldn’t pay. So, I went to the IRS building to set up a payment plan. They gave me an income vs expense worksheet to fill it out. The woman said that according to the worksheet, I could not afford to pay monthly. I told her that I could do one more gig each month to pay for it. She said she could only go by what was on the sheet.
I said, “Awesome! I don’t have to pay!” She said, “Oh no, you still have to pay”. I said, “But you just told me that I can’t pay”. She said there was only one way around it. Since I owed $1,800, I could pay it off in three monthly payments and wouldn’t have to go through the process.
I said, “So you’re telling me that I can’t afford to pay $100 per month, but if I pay $600 per month, that’s acceptable”. She said “That’s correct”. I asked her if she knew just how stupid that was (which didn’t help my cause), and she just told me it was policy. I know!
See you tomorrow.
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