ARGH. I finally got my 2010 W-2, and I went to TurboTax and did my tax filing first thing, and I owe the IRS $844.
This smarts even worse because I'd used a TurboTax calculator through Mint.com, and it had estimated that I'd have a small refund. So the big bill was a surprise indeed!
The problem, I found, was that I had said, "Yes, file as Head of Household" on the tax calculator, and that had skewed the results. (A Head of Household gets more deductions, and therefore is taxed on a smaller amount and has to pay less.) I figured that in 2010 I lived alone (or with a housemate who paid her own bills) and paid my rent; I make the financial decisions in my household because I'm not responsible to someone else (a parent, for example). But to be eligible for that role, you have to have dependents of your own, and they have to be related to you. I didn't find that out until I had filled out the 1040 tax form. *sigh*
This morning I e-filed my federal return (free through TurboTax) and set up a direct debit payment to come from my checking account in early March; because of legislation passed in December 2010, returns like mine won't be processed until mid-February even if they are filed now. That gives me enough time to cut back further on expenses and just take that chunk out of one paycheck. It's painful, but it will work. And I'll still fulfill my resolution of paying my taxes on time.
Slightly better news: I have to file a simple state tax return and mail it in (TurboTax charges to e-file a state return, so I'll do it myself), and I'm owed a refund of $26. That will go toward paying my federal taxes, of course.
I'm feeling really poor right now. But all my bills are paid. I guess that's the difference between being broke and just having very few assets and no ready cash flow.
Saturday, January 22, 2011
Monday, January 10, 2011
Christmas Club
Oof. I think I understand for the first time the "traditional" haze of bills that follows the holidays.
I got a little out of control with Xmas gifts, I'll admit -- and everything went on the little blue card! That got me extra JetBlue points, which is great... but even I, with my aversion to credit-based economy, can feel the attraction of "buy now, pay later". Glad I got it out of my system without too much damage. I can pay my January AMEX bill. Barely. It means that I'm going to have to watch myself for the next couple months, though.
For next year, I've set up an account for holiday expenses. It's an ING "Electric Orange" checking account (again, opened online in just a few minutes). I've arranged a small weekly transfer -- just $10 -- to run until the week before Thanksgiving. That gives me about $450 (a little more than I spent on family/friends/loved ones' gifts this year) to work with, and I can start early to avoid the holiday rush. It won't cover everything, but it's an amount I won't miss, and it more than gets me started. The account has a debit card I may be able to use to pay for items online, and then anything above that amount -- special food or decorations and the children's gifts I always donate through my church -- can be handled out of what I have available at the time.
I got a little out of control with Xmas gifts, I'll admit -- and everything went on the little blue card! That got me extra JetBlue points, which is great... but even I, with my aversion to credit-based economy, can feel the attraction of "buy now, pay later". Glad I got it out of my system without too much damage. I can pay my January AMEX bill. Barely. It means that I'm going to have to watch myself for the next couple months, though.
For next year, I've set up an account for holiday expenses. It's an ING "Electric Orange" checking account (again, opened online in just a few minutes). I've arranged a small weekly transfer -- just $10 -- to run until the week before Thanksgiving. That gives me about $450 (a little more than I spent on family/friends/loved ones' gifts this year) to work with, and I can start early to avoid the holiday rush. It won't cover everything, but it's an amount I won't miss, and it more than gets me started. The account has a debit card I may be able to use to pay for items online, and then anything above that amount -- special food or decorations and the children's gifts I always donate through my church -- can be handled out of what I have available at the time.
Thursday, January 6, 2011
Starting 2011 off right
I realized that all of my major financial triumphs in 2010 were made in the last three months. Admittedly, Quarter 4 had a lot of foundational planning behind it -- but that only points out that I can do much more in 2011 if I start early!
To that end, I opened a Roth IRA this morning at Charles Schwab.
I got an email nudge from Mint.com with a list of potential investment companies, including Schwab. I was attracted to it because of the zero-minimum starting balance (as long as you set up a recurring deposit, which I'd intended to do anyway) and that I could apply online! I don't want to go into a bank and talk to a human about my inexperience in financial matters. So I filled out a form online and elected to transfer funds in later (after my paycheck tomorrow is the plan). Easy!
I still don't know how much I'll be socking away each month. I think my educational fund will be taking the focus in 2011 and 2012. Although I know the sooner I get started with the IRA, the more I'll end up with, I think adding small amounts for the first couple of years is okay. Assuming the advanced degree gives me more earning power, I can maximize my contributions when I'm employed at a higher salary.
To that end, I opened a Roth IRA this morning at Charles Schwab.
I got an email nudge from Mint.com with a list of potential investment companies, including Schwab. I was attracted to it because of the zero-minimum starting balance (as long as you set up a recurring deposit, which I'd intended to do anyway) and that I could apply online! I don't want to go into a bank and talk to a human about my inexperience in financial matters. So I filled out a form online and elected to transfer funds in later (after my paycheck tomorrow is the plan). Easy!
I still don't know how much I'll be socking away each month. I think my educational fund will be taking the focus in 2011 and 2012. Although I know the sooner I get started with the IRA, the more I'll end up with, I think adding small amounts for the first couple of years is okay. Assuming the advanced degree gives me more earning power, I can maximize my contributions when I'm employed at a higher salary.
Monday, December 27, 2010
New Year's Resolutions
It's getting to be that time of year again. This post on DailyWorth.com inspired me to create a few financial resolutions of my own.
*Make at least one post a month in this blog.
*Set aside $100/month (equal to half my monthly church pledge or half my monthly house savings contribution) to be donated to a worthy charity.
*Pay my taxes on time.
*Make payments into my education savings account for grad school.
*Apply any bonuses or raises to savings.
In general, I plan to live below my means in order to accrue savings for larger life events. More about "living poor" and what that means for my life -- especially once Koo moves in! -- in another post.
*Make at least one post a month in this blog.
*Set aside $100/month (equal to half my monthly church pledge or half my monthly house savings contribution) to be donated to a worthy charity.
*Pay my taxes on time.
*Make payments into my education savings account for grad school.
*Apply any bonuses or raises to savings.
In general, I plan to live below my means in order to accrue savings for larger life events. More about "living poor" and what that means for my life -- especially once Koo moves in! -- in another post.
Monday, December 20, 2010
I do it for the miles, baby.
One benefit of my JetBlue American Express card is, of course, the TrueBlue reward points I get for using it.
Now, because I use this card largely as a debit card, I won't be racking up thousands in purchases. (That may change when I start paying school fees with it.) However, the ways in which I choose to make charges can help me slowly gain points (that don't expire) that I can use toward JetBlue flights. Anytime I spend money with the AMEX, I get a point per dollar. If I'm spending in a select category (including restaurants, gym memberships, movie theaters, event tickets purchased from the venue), I get 2 points per dollar. And if I buy JetBlue tickets online at jetblue.com with my JetBlue American Express, I get a whopping 8 points per dollar!
The companies say that TrueBlue reward flights start at 5,000 points one-way / 10,000 points round-trip. That's technically true, but for my usage (SFO to LGB or PBI and back, often on weekends/holidays, but infrequently) it runs a little higher. It's going to take me a while to rack up enough points from daily spending to completely cover a flight. (And it does need to be completely covered; if you're trying to buy a flight with points and you don't have enough points accrued, you have to purchase points to complete the sale.) However, I got 10,000 points for signing up and using the card the first time, and an additional 10,000 because I spent more than $500 on the card in the first 6 weeks (I was charging EVERYTHING in order to reach that bonus). I sent AMEX a polite request to have the points credited to my TrueBlue account sooner (they say processing usually takes up to 12 weeks), and they were great about it. The 20,000 points were transferred the next day, in plenty of time for me to book my New Year's weekend travel, and they paid for most of a one-way flight back from Florida. After pricing round-trip tickets, it looked like it would cost just as much as two one-ways, and I would have to pay it out of pocket.
SFO > PBI via kayak.com: 438.90 (Yes! It's crazy-expensive to fly during the holidays!)
PBI > SFO via jetblue.com: 126.48 (paid in addition to points)
Here's the breakdown:
1,650 previously-earned points (from flights in 2009-10; I had earned double points for booking online)
plus 20,000 points (from the AMEX bonus)
plus $126.48 paid for extra points (a bundle of 3500 plus 850 bonus points from JetBlue for purchasing them in bulk; I couldn't buy just the amount that I needed.)
That left me using 25,600 points for a ONE-WAY TRIP. Ouch. But it's free money. I had 426 points left over, and this morning AMEX credited me 818 points for my recent purchases (several weeks after making them, for processing). So I have a healthy balance still. My sweetie I'm visiting in Florida chipped in toward the USD cost of airfare, so all in all this really helped out in vacation planning.
Now, JetBlue still rocks some pretty sweet fare deals, and it's not always worth it to use the points. For example, I got an email last week plugging one-way fares from $39 -- travel period several weeks from now, one-day-only sale. It seemed like a great way to get Koo back up here after she moves her stuff and has to return the U-Haul in SoCal (rates are sooo much better than one-way move). The LGB airport is tiny and has always been hassle-free with security, and she can fly up here in an hour, then take BART (public transit) to me. I scooped up a one-way flight for Koo on the Monday after the move for under $50 including taxes/fees. If I'd tried to get the same flight in points, it would have run me 5,000 -- or about $112. And, hey, buying it online with my card gets me more points!
Now, because I use this card largely as a debit card, I won't be racking up thousands in purchases. (That may change when I start paying school fees with it.) However, the ways in which I choose to make charges can help me slowly gain points (that don't expire) that I can use toward JetBlue flights. Anytime I spend money with the AMEX, I get a point per dollar. If I'm spending in a select category (including restaurants, gym memberships, movie theaters, event tickets purchased from the venue), I get 2 points per dollar. And if I buy JetBlue tickets online at jetblue.com with my JetBlue American Express, I get a whopping 8 points per dollar!
The companies say that TrueBlue reward flights start at 5,000 points one-way / 10,000 points round-trip. That's technically true, but for my usage (SFO to LGB or PBI and back, often on weekends/holidays, but infrequently) it runs a little higher. It's going to take me a while to rack up enough points from daily spending to completely cover a flight. (And it does need to be completely covered; if you're trying to buy a flight with points and you don't have enough points accrued, you have to purchase points to complete the sale.) However, I got 10,000 points for signing up and using the card the first time, and an additional 10,000 because I spent more than $500 on the card in the first 6 weeks (I was charging EVERYTHING in order to reach that bonus). I sent AMEX a polite request to have the points credited to my TrueBlue account sooner (they say processing usually takes up to 12 weeks), and they were great about it. The 20,000 points were transferred the next day, in plenty of time for me to book my New Year's weekend travel, and they paid for most of a one-way flight back from Florida. After pricing round-trip tickets, it looked like it would cost just as much as two one-ways, and I would have to pay it out of pocket.
SFO > PBI via kayak.com: 438.90 (Yes! It's crazy-expensive to fly during the holidays!)
PBI > SFO via jetblue.com: 126.48 (paid in addition to points)
Here's the breakdown:
1,650 previously-earned points (from flights in 2009-10; I had earned double points for booking online)
plus 20,000 points (from the AMEX bonus)
plus $126.48 paid for extra points (a bundle of 3500 plus 850 bonus points from JetBlue for purchasing them in bulk; I couldn't buy just the amount that I needed.)
That left me using 25,600 points for a ONE-WAY TRIP. Ouch. But it's free money. I had 426 points left over, and this morning AMEX credited me 818 points for my recent purchases (several weeks after making them, for processing). So I have a healthy balance still. My sweetie I'm visiting in Florida chipped in toward the USD cost of airfare, so all in all this really helped out in vacation planning.
Now, JetBlue still rocks some pretty sweet fare deals, and it's not always worth it to use the points. For example, I got an email last week plugging one-way fares from $39 -- travel period several weeks from now, one-day-only sale. It seemed like a great way to get Koo back up here after she moves her stuff and has to return the U-Haul in SoCal (rates are sooo much better than one-way move). The LGB airport is tiny and has always been hassle-free with security, and she can fly up here in an hour, then take BART (public transit) to me. I scooped up a one-way flight for Koo on the Monday after the move for under $50 including taxes/fees. If I'd tried to get the same flight in points, it would have run me 5,000 -- or about $112. And, hey, buying it online with my card gets me more points!
Friday, December 17, 2010
Catch-up!
Wow, it's been a while. Work and everything else have been pretty hectic (so what else is new), and I let my blogging here slide. But I've got lots of money stuff going on.
What's new:
I didn't get a raise. It's been two years since my last one, and now the news from management is that I've topped out the "band" for my level and position. Moving into a different department might increase my potential salary, but I've not made any decisions yet. In these uncertain times, I'm planning on staying with this company (and in my current position if I must) as long as they're willing to pay me. I count on a steady income, and I'd rather plug along doing work I am good at (even if it's not the most inspiring) while I have the opportunity.
I collected receipts -- every single one -- throughout October and some of November, but I fell off around Thanksgiving. I think it was a great exercise in seeing where my money goes, but I realize that I use my debit card (or now my American Express) for most purchases. I think that going forward, I will track ATM withdrawals and cash spending only; the other information is recorded online at my bank and American Express and Mint.com. I'll still hang on to receipts for large purchases, or those that might be important for tax purposes.
I have started the grad school application process! I am still waiting on my W-2s (but I can use the ones from 2009 for the FAFSA application, I believe) to complete the process and submit the application online, but I did order an undergraduate transcript yesterday and had that sent to the admissions office.
Oh, and... Drumroll, please!
I PAID OFF MY STUDENT LOAN.
*cheers* That's $18,689.69 (about $15,000 plus interest) paid off, 5 years after graduating (including a year of unemployment without income, in which I went into deferral status for several months). That means I can start applying the same monthly payment ($500) to a savings account for grad school fees! And it means that I am officially debt-free!
What's new:
I didn't get a raise. It's been two years since my last one, and now the news from management is that I've topped out the "band" for my level and position. Moving into a different department might increase my potential salary, but I've not made any decisions yet. In these uncertain times, I'm planning on staying with this company (and in my current position if I must) as long as they're willing to pay me. I count on a steady income, and I'd rather plug along doing work I am good at (even if it's not the most inspiring) while I have the opportunity.
I collected receipts -- every single one -- throughout October and some of November, but I fell off around Thanksgiving. I think it was a great exercise in seeing where my money goes, but I realize that I use my debit card (or now my American Express) for most purchases. I think that going forward, I will track ATM withdrawals and cash spending only; the other information is recorded online at my bank and American Express and Mint.com. I'll still hang on to receipts for large purchases, or those that might be important for tax purposes.
I have started the grad school application process! I am still waiting on my W-2s (but I can use the ones from 2009 for the FAFSA application, I believe) to complete the process and submit the application online, but I did order an undergraduate transcript yesterday and had that sent to the admissions office.
Oh, and... Drumroll, please!
I PAID OFF MY STUDENT LOAN.
*cheers* That's $18,689.69 (about $15,000 plus interest) paid off, 5 years after graduating (including a year of unemployment without income, in which I went into deferral status for several months). That means I can start applying the same monthly payment ($500) to a savings account for grad school fees! And it means that I am officially debt-free!
Friday, October 29, 2010
Credit Score revealed
During the rental application process for my new apartment (yes! I am signing a lease on my first place where I haven't had a parent as a co-signer!), they ran my credit check. The company has a strict 660+ policy for new tenants, and because I have little credit history, I was worried that I wouldn't measure up. I'd run my stats in CreditKarma.com, and they estimated my score to be about 666. Cutting it close!
But the landlady was favorably impressed by my income, lack of debt, and even my credit score -- which I asked her for, since she'd submitted the inquiry to Trans Union (one of the 3 major credit bureaux).
But the landlady was favorably impressed by my income, lack of debt, and even my credit score -- which I asked her for, since she'd submitted the inquiry to Trans Union (one of the 3 major credit bureaux).
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