Tuesday, 29 Jul 2008
photo credit: Ed Yourdon
Last night I came home to a thick envelope from the IRS. Needless to say, my stomach turned just a little. It turns out we (really me, since I do our taxes) goofed on our 2006 taxes. Through some strange turn of events, I input the info from a 2005 W-2 instead of the 2006 W-2. I don’t know how I did that but it’s a moot point now. The IRS wants us to send them ~$2000 in the next thirty days.
When I re-ran the numbers, I discovered that their calculations were off. In actuality, we only owe them ~$1900. Still quite a chunk of change but I don’t want to send them any more than we have to. While I’m not pleased over having to part with so much cash, I’m not stressed because we do have it. We’ll simply transfer the money from one of our savings accounts and send a check to the IRS. When unexpected events occur, an emergency fund can ensure peace of mind.
July 30th, 2008 at 3:22 pm
I totally agree with you in terms of having emergency cash. Just this past weekend my sister was in a jam and she wanted me to spot her. I wondered why she didn’t have the money to do it herself and I realized that she really doesn’t have one. Meanwhile, I’m so concerned about rainy days that I make a consious effort to save money as much as I can.
Great Reminder…Great Post
July 31st, 2008 at 12:57 pm
yikes, that’s definitely no fun. But a perfect reason for that emergency fund. The only problem is having to build the emergency fund back up…