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Getting out of debt in FEBRUARY, 2012!!! - Page 3

post #41 of 90

I'd like to propose a toast......................

 

Here's to the completion of baby step one!.............................CHEERS!!!!!!!!!!!

 

 

champagne.gif


Edited by trekkingirl - 2/18/12 at 2:58pm
post #42 of 90

Here here! Onto obliterating debt! 

 

       

 

 

                    champagne.gif

post #43 of 90
I filed our tax return yesterday and woke up this morning with a notice from TurboTax that it was rejected b/c someone has filed under my social security number. This is the second year in a row this has happened. Last year's issue still isn't resolved. So now the IRS is currently holding about $12,000 that we are owed while this is straightened out. I am so frustrated. We really need this money, and from this past year's experience, it doesn't feel like we'll ever see any of it. I mean, they've had a whole year to figure out that I'm still the same me that's been filing since the 90s. And I'm guessing that since this imposter has beat me filing both years now that the IRS has probably been paying that person a refund while I sit here struggling and needing that money. eyesroll.gif

I'm almost ready to break down and hire a tax lawyer. Anyone had any experience with them? Are they terribly expensive?
post #44 of 90

OMG Amanda, I am furious for you!! That is a LOT of your hard earned money that they are holding out on. I've never had experience with a tax lawyer, but it sounds to me like high time you got yourself one. This is ridiculous!

post #45 of 90

Amanda I'm so sorry, that really sucks! Maybe a lawyer friend might be able to help you without having to hire a tax lawyer? Do you know somebody? Or maybe legal aid? I really hope this gets figured out soon. You should charge the IRS interest!

post #46 of 90

Wow, sounds like a serious account of identity theft.  I hope you are able to find a lawyer that can help you through this because if after 2 years it is gone too far.

 

Tonight meeting was about insurance and it made think how important it is to get life insurance in place, long term disability insurance, and identity theft insurance in place sooner rather than later as long as it isn't too expensive.  DH has some life insurance through work, but if his job ended, no more life insurance, so we are going to talk about how to get some life insurance outside of our jobs.  Our faciliator shared http://www.term4sale.com/ as a place to get an idea of how much term life insurance would cost from different companies.  Gives me some hope.

post #47 of 90
I totally agree about the importance of insurance! We have term life on each of us, but we are probably underinsured. We also recently got renters insurance and earthquake ins, since we're in SoCal.

Something I learned from Size Orman-- make sure that you get life ins for yourself as well as your DH, even if you are a SAHM without an income. If anything happened to you, your DH would have to employ a nanny or daycare, so SAHMs need to be fully insured as well.
post #48 of 90

Lavatea, I have absolutely no idea how to deal with the identity theft, I'm sorry. But it did occur to me that if I were in your shoes, I would break a leg getting to HR and having them adjust my withholding for this year.

 

I would make it so I owed at the end of the year. Figure out exactly how much more per paycheck you are getting after you adjust, open a savings account just for this purpose, and put all the money in it. Then next year at this time, you'll send some of it to the IRS and you'll have your return already in your own hands - even if the problem of this year and last year drag on, which I obviously hope very much it does not. Still, it would be terrible not to play it safe with this year's money and end up regretting it.

post #49 of 90

We have been doing a no-spend/pantry/freezer challenge since Feb 17, to get us to the end of the month. If we succeed, we will be within $200 of our $10k goal at the end of the month - and surely we will achieve our goal in full at the end of March!

 

The freezer challenge had the added bonus of finally forcing us to eat the meat in there. I've been lazy about a lot of it, but it needs to be eaten or it will eventually just be too old.

post #50 of 90

laohaire, sounds like a good idea on the tax front and on the using up food that is in the house.

 

I am so excited my little cottage business - sewing - is starting to take off a little more after a year of working at it.  Last night I finally got the deposit to sew a set of dining room curtains, living room valances, and living room throw pillows - money is going into the "grow my business fund" so I can hopefully stay home full time when I finally get pregnant and have a baby.  I have had two calls about curtains and this is the first one to follow through with the custom order.  Yeah!

post #51 of 90

Sounds like everyone is doing well in here!

 

Dh and I sat down 2 nights ago and made our "irregular income" plan.  We have a lot of it in the spring with our tax return, dh's bonus, and his 2 weeks a year with the Army.  We ended up with like 13 things on the list and, with the irregular income from this spring, we'll make it through 10 of the 13 items. *tosses confetti*  We'll be paying off 2 credit cards, saving for ds1's summer care, buying a used van, getting a simple desktop computer, getting a new washer and dryer, saving for Christmas, saving for a year's worth of kid's clothes, and paying off dh's student loan.  WOOT!

 

At that point, we'll start our snowball.  We'll have my student loan (which is GIANT) and one more credit card.  And the house, but we're hoping to move before we get to that step.

post #52 of 90
Quote:
Originally Posted by liberal_chick View Post

Sounds like everyone is doing well in here!

 

Dh and I sat down 2 nights ago and made our "irregular income" plan.  We have a lot of it in the spring with our tax return, dh's bonus, and his 2 weeks a year with the Army.  We ended up with like 13 things on the list and, with the irregular income from this spring, we'll make it through 10 of the 13 items. *tosses confetti*  We'll be paying off 2 credit cards, saving for ds1's summer care, buying a used van, getting a simple desktop computer, getting a new washer and dryer, saving for Christmas, saving for a year's worth of kid's clothes, and paying off dh's student loan.  WOOT!

 

At that point, we'll start our snowball.  We'll have my student loan (which is GIANT) and one more credit card.  And the house, but we're hoping to move before we get to that step.


Sounds great! I just had to say, you will not be *starting* your snowball after that - you'll already be well on your way, what with the 2 cards paid off and one of the student loans.

 

post #53 of 90

That sounds like a sweet start to a debt snowball!  Go, Go, Go!

post #54 of 90

Everyone is doing so well, it's encouraging.  DH is getting lots of hours at his new job so we are hoping to finish (again) prestep 1.5 and 1.8 this month.

post #55 of 90
Looks like the transmission is going out on our car! May be needing that emergency fund.
post #56 of 90

It sucks to dip into an emergency fund.... but it's also so GREAT to have one!!!!!!!!!!!!!!!!!

post #57 of 90
Quote:
Originally Posted by laohaire View Post

Lavatea, I have absolutely no idea how to deal with the identity theft, I'm sorry. But it did occur to me that if I were in your shoes, I would break a leg getting to HR and having them adjust my withholding for this year.

I would make it so I owed at the end of the year. Figure out exactly how much more per paycheck you are getting after you adjust, open a savings account just for this purpose, and put all the money in it. Then next year at this time, you'll send some of it to the IRS and you'll have your return already in your own hands - even if the problem of this year and last year drag on, which I obviously hope very much it does not. Still, it would be terrible not to play it safe with this year's money and end up regretting it.

I was just coming on here to ask for help with this very idea. I wondered if anyone knew what number of withholdings to put on the I9 to break even at the end of the year. I don't want to owe the IRS, but I don't want a refund anymore, either.

I wonder...if I did owe, would they believe I'm me at that point? I won't go into mega details here, but I spent more time on the phone with the IRS early this week and it seems to me that they don't care that this has happened. I was basically told that they weren't concerned with prosecution of the offenders once they sort it all out. Their concern is simply matching the correct taxpayer to the correct return.
Quote:
Originally Posted by lilacvioletiris View Post

I am so excited my little cottage business - sewing - is starting to take off a little more after a year of working at it.  Last night I finally got the deposit to sew a set of dining room curtains, living room valances, and living room throw pillows - money is going into the "grow my business fund" so I can hopefully stay home full time when I finally get pregnant and have a baby.  I have had two calls about curtains and this is the first one to follow through with the custom order.  Yeah!

That's awesome!!
Quote:
Originally Posted by trekkingirl View Post

Looks like the transmission is going out on our car! May be needing that emergency fund.

This happened to us last year. It stinks. greensad.gif Sorry you're going through it.


I need some help with my budget. I'm going to try to figure out a way to post my spreadsheet so you guys can help me brainstorm.
post #58 of 90
Quote:
Originally Posted by lavatea View Post


I was just coming on here to ask for help with this very idea. I wondered if anyone knew what number of withholdings to put on the I9 to break even at the end of the year. I don't want to owe the IRS, but I don't want a refund anymore, either.
I wonder...if I did owe, would they believe I'm me at that point? I won't go into mega details here, but I spent more time on the phone with the IRS early this week and it seems to me that they don't care that this has happened. I was basically told that they weren't concerned with prosecution of the offenders once they sort it all out. Their concern is simply matching the correct taxpayer to the correct return.



There are many factors involved with calculating your withholding, and I don't think any of us can give you a magic number - otherwise the government would just calculate it for you and they'd always withhold the exact, spot-on amount. As to not wanting to owe the IRS - why not? You would be saving the amount you were previously withholding, so you would have a stash of cash at the end, you write your check and immediately enjoy the "return" without waiting. The odds of withholding the exact amount so that you weren't owing or getting a refund are very slim, and I would much rather err on the side of sending the IRS a check than giving even a few hundred bucks to your identity thief.

 

I would just put down the maximum I could, that's it. Then on the next check with the withholding adjusted I would figure out the difference in the check. Let's say you got paid $158 more than you previously did - that's how much you put in your savings account. No difference to your budget whatsoever; it's just that you are getting 0.001% interest on it instead of 0.000% and letting Uncle Sam keep it for you. Obviously if your check varies it will take a little more figuring but it should be figurable either way.

 

I don't know about the legal process for identity theft but you need to see a lawyer. No, the IRS isn't going to say "oh, she changed her withholding, now we'll believe her and cut her a new check and consider the old one a loss." The onus is on you to figure out who your thief is and bring them to justice. My MIL had an identity problem with the IRS years ago - I don't remember the details, but I don't think it was a theft but a data entry mistake. The IRS did not care. She hired a lawyer, and poof, the problem was solved. For you it will be a little harder, but certainly worth it for thousands and thousands of dollars.

post #59 of 90

Well my $1000 baby emergency fund isn't even going to come close to paying for my car to get fixed. They quoted me $3500! I am just counting my blessings that I have that much on a credit card. If that had happened a month ago my credit card was maxed out and my emergency fund was still a work in progress. I think I would have been forced to open another credit card or get a loan. I have to have a car. I feel very defeated but blessed at the same time. Yes, it's a step backwards, but I have the means to get it fixed for the first time in TEN years. I'm so glad I'm fighting for my total money makeover. It sure beats surrendering to being stuck .........  F O R E V E R

post #60 of 90

Pre-Step 1: Get current on your debts and do a budget Done.
0.1 No new borrowing. Done.
0.2 Talk with spouse and get him/her on the same page as you concerning finances. Done.
0.3 Do a written budget Er, kinda.
0.4 Temporarily stop all retirement contributions Done.
0.5 Get current on all the basics (Shelter, Food, Utilities, Basic clothing) Done.
0.6 Amputate "toys" (bikes, boats, ATV's etc) to help snowball Never had.
0.7 Cut lifestyle (Cut cable, cell, extras, eating out) and/or get a second job to raise $1000 EF. Done.
0.8 Get current on ALL bills Done.

BS1 $1,000 to start an Emergency Fund Done, currently.
1.1 Chop up/freeze CC's (You have an EF now) I need a CC for my business. But yeah.
1.2 Get Health insurance NOW if in the US Done.
1.3 Get Life insurance NOW if you have considerable debt/your family couldn't make it financially if you died. Done.
1.4 Amputate cars that you can't pay off within 24 months Done-ish. We are replacing a dying car and will probably have a 3 or 4 year loan, depending.

BS2 Pay off all debt using the Debt Snowball Sooooo close.
2.0 Do the debt snowball, paying all your debts from lowest BALANCE to highest. Pretty close. We've got about 95% of our debt gone.

 

YAY!!

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