Pink Phizz

Tuesday, January 31, 2006

Me and the I.R.S.

So today I made my third call this month to the I.R.S. Even though I had gotten the "all clear" message from the first two, I received my Form-1099-DIV in the mail today and got a bit freaked out over it. The second call to the I.R.S. had given me the information that if I earned more than $3200. (£1810.77) this past year, I would have to file and possibly pay taxes. So on receiving Form-1099, I added all the appropriate boxes up and still didn't come up with the $3200. Whew!

However, I felt like I was still doing something wrong, so I made that call again - kinda feeling like a moth to a flame. Nope, I'm still in the "all clear" zone. I was informed, though, that if my earnings from said stock, whether I roll them over (in which case I do) or not, do go over that amount, I will have to file a tax return and perhaps pay taxes. I informed the gentleman that if I ever went over that amount then I would gladly file because that would mean that my stocks/bonds soared for that year.

So, basically, I do not have to file at all this year.

However, there are two things that I have learned after making these calls:

1) It definitely does not pay for me to work here in the U.K. unless I am willing to earn well under $3200. (£1,810.77) on a yearly basis, because then I would wind up paying U.S. taxes as well as U.K. taxes.

2) I've been nagging Krip to also put my name on our savings account. Until today that is. I suddenly yelled, "hold all the presses!" I've decided that it doesn't pay for me to be listed on our savings account guessed it. If my name is on the savings account, we would have to pay taxes in the U.S. of A. also since savings can be considered earnings, and the savings and my earnings from my rolled-over stocks/bonds would definitely put me over the $3200. mark.

Are you confused yet? Think what I have to go through. Every. Single. Year. Now, if we ever decide to return to the U.S. to live, which means Krip to immigrate, then it will be a whole nother kettle of fish with the I.R.S.



At 5:33 PM , Blogger Molicious said...

I hate taxes. I hate the IRS. I hate being an adult. lol

At 9:35 PM , Blogger Fred said...

Alice, my tax return when I lived there was close to 150 pages. I kid you not. It was complicated because I spent so much time in many different countries. I was very lucky in that I had an accounting firm do them for me, but I think they had someone on that return full-time for a month. It was crazy.

At 3:56 AM , Anonymous the letter b said...

am i alone in thinking taxes [together with the taxman]is evil? talk of which now you remind me of the time i was temping at this consulting firm moons ago whereby i typed US tax forms on behalf of their clients. and it was mindboggling to say the least - the Federal, state and then the declaration of earnings in singapore.

At 12:14 PM , Blogger Alison said...

I agree with Molicious!

At 4:07 PM , Blogger "Alice" said...

Death and taxes, can't escape either one.

At 6:19 AM , Blogger MonicaR said...

It's not uncommon to feel that you're doing something wrong when you are doing something right when it comes to dealing with the IRS.

Scawy, scawy government department....

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