22 Jul
So Much for July’s Snowball
Every village needs an idiot and today I guess I’m it.
You know those times when you think you’re being nice, but it turns out you’re just lying for someone else? Compound that with a fat slice of Stupid and you’re going to end up owing someone money.
Just like me, the village idiot. (Can you tell I’m not proud of what I’m about to tell you yet? I really can be more self-deprecating. Truly, I can.)
It begins when we did our taxes two years ago. Our kids were in daycare then. If you haven’t had the pleasure of daycare let me tell you, in addition to the petri dish of germs you invite into your life you will be truly amazed at how much it costs. Our kids went only part-time, but nonetheless we spent nearly $11,000 in daycare that year.
Tax time rolled around and I asked our provider for her tax ID number which she happily gave me along with a seemingly innocuous request, “Please just claim $6,000 for the year; it’s the max they allow anyway.”
In retrospect it seems so clear: we were being asked to lie for someone else. Why reason left me is a mystery, but that’s what I did. I claimed we spent $6,000 instead of $11,000.
Now here comes Stupid; are you ready?
Five thousand was paid for from a pre-tax flexible spending account for dependent care thus not reducing our taxable income by that amount… and I didn’t catch that. Guess who did?
Yep, the bill from Uncle Sam just arrived. Had I kept things clean and simple — and honest — this month’s debt snowball payment would not be paying back-taxes. Arg!
It’s not the end of the world, it’s just one month’s snowball, but I feel dirty knowing that I look either very dishonest or very dumb in someone’s eyes. I suppose the truth is I am both.
The nice thing about being an idiot? If it’s painful enough, you’ll never do it again.
the Dad
Posted by Kellie on 07/22/09 at 11:18 am
Ouch… so sorry!
And yup… don’t ever “help” people out. They are only “helping” themselves. (In this kind of issue.)
Posted by Tutu on 07/22/09 at 11:31 am
Methinks you’re WAY too hard on yourself! I don’t even “understand” the whole “pre-tax flexible spending” thing you wrote about. Although, I do agree – lying for others, even trying to be the “nice guy” is a no win situation. What’s that old adage – first time’s a mistake, second time is stupid. Although – I must admit, it took me 3 tries to get the marriage thing right and that’s worked out FABULOUSLY. It’s all just part of life’s lessons. Lighten up on yourself, my friend. As Dave Ramsey would say, “if that’s the worst thing you ever do, you’re way ahead of the game!
Posted by KELSALYNN on 07/22/09 at 4:19 pm
Before the TMMO, wouldn’t you have totally freaked out when the tax bill came??? I know I freaked out over every little “unexpected” expense b/c I had no control over my money. Yes, it totally stinks that it’s one month’s snowball, but before a budget, you probably wouldn’t have had it at all. Realize that you screwed up and accept responsibility (which you’re doing) but then move on and stop beating yourself up. You guys are doing fabulous!
Posted by the Dad on 07/22/09 at 6:19 pm
I agree with all three of you and thanks for the encouragement. I think my disappointment is compounded because with last month’s car repair bill this makes two months in-a-row without real progress on our debt.
Grrr….
the Dad
Posted by Jennifer on 07/22/09 at 8:32 pm
Hello “the Dad”. Sorry to hear about your “stupid tax”. As you said, lesson learned. Thanks for visiting my blog. Looks like you guys are doing great. Keep it up. I look forward to following your progress.
Posted by Erin on 07/23/09 at 4:54 am
That’s such a bummer. July has been a bit of a bust for us, too. Car accident= $500 deductible, getting the other, garaged beater up and running/legal = $500, all in a week’s time. That doesn’t include possible raised rates in the future. It hurts to have to wipe out the BEF in a matter of a week, but I guess that’s what it’s there for. Sorry you had a painful lesson learned with the tax thing, but I’m sure you will land on your feet with even more determination than before.
Posted by KELSALYNN on 07/23/09 at 6:10 am
You made a comment that we’ll be debt free by Halloween. I’m shooting for SEPT 30th! It’s our wedding anniversary and what better gift to ourselves!! We’re about $600 shy of reaching this goal right now if my projections are right so it looks like we’ll be selling our wedding rings! LOL! Just kidding!
Posted by Jennifer on 07/25/09 at 6:17 am
Hi! Thanks for your comments! I did go in and pay the $25. It will bring relief to us during the time we are modifying our mortgage.
Posted by A.Marie on 08/01/09 at 3:54 am
Hi! I found you when I was over at Jennifer’s blog, Finding Financial Peace. Don’t be too hard on yourself; my hubby and I also made some stupid financial mistakes, but that is how a person learns, unfortunately! By Making Stupid Mistakes!!
Believe me, one of our mistakes was a doozy…..we should have the title of Village Idiot! :{
I like how you ended your post, “If it’s painful enough, you’ll never do it again. I’m going to remember that phrase!
Posted by Sarah H. on 10/01/09 at 5:32 pm
Hey There, I just stumbled across your site today and have been reading your prior posts. I just finished reading this post (but not the comments) and wondered if you considered filling an amendment to correct the amount of child care expenses? Granted, I have no children and don’t know the thresholds for deduction off the top of my head, but I do think that you can file amendments to correct errors or provide better information. It might be worth looking into to see if you can get some of your money back from Uncle Sam. Good luck & great site! I am also trying to climb my way out of debt and I am finding your site very helpful and motivational. Thanks for sharing your journey!