Income Tax Matters

She said with relief that her taxes, federal and state, were done and in the mail.  All the clutter of receipts and documents were gone from tabletops and desks - everything safely put away to retrieve for future reference when necessary.  

The woman matter-of-factly stated she’s always done her own taxes.   “Why not?  Accounting was my major course of study in college.  My pride will not let me pay anyone for a skill set I should have.”   She admits there is usually some new tax provision every year but the government’s instructions are complete.  “I just have to be patient and confident.”  Good for her.

Maybe she should do my taxes.  She told me she gets a modest refund every year. 

Then I was dismayed to learn this year she was expecting a larger refund than ever, but was not at all thrilled about it.  “Now, when the government needs increased revenue in order to handle obligations and reduce our trillion dollar deficit, I’m paying less taxes,” she lamented.  I couldn’t believe her!

She understood why her tax obligation was lower.  The combination of increased prescription costs, always-high property taxes and generous charitable contributions together with her lower income resulted in a formula that favored her pocketbook – not the governments.

It pleased me that she cared about doing her part to fund this nation.   Still I think she will put her ‘windfall’ to good use.

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Enjoy the weekend.   I look forward to returning on Monday.