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Home > Vacation fund is gone - we owe 8K+, so need to come up with 14K before April 15

Vacation fund is gone - we owe 8K+, so need to come up with 14K before April 15

February 23rd, 2015 at 06:52 am

DH finished doing our taxes - we will owe over 8K. Parts of it is extra income, but parts of it is much smaller interest deduction from our co-op for this year. I think this had something to do with the underlying mortgage refinance, so we are not getting many thousands of interest deduction as we got last year.

So we need to pay over 8K, than we still have one IRA to fund (5,500).

Our vacation or maternity or "do something cool fund is gone). That 5,700 will be going to current needs. All of DH's teaching income, for teaching 85 students, will go to taxes, not getting us any further ahead (no paying of student loan, so saving for maternity leave).

Well, what can you do. Frown

6 Responses to “Vacation fund is gone - we owe 8K+, so need to come up with 14K before April 15”

  1. VS_ozgirl Says:

    Ugh. Ouch! So sorry to hear this. That's so much money to come up with in two months! In Australia when people have difficulty paying their taxes on time, they are allowed to arrange a payment plan. Does the US tax system have anything like this?

  2. chloe Says:

    Bummer -- large tax bills are never fun. Last year we ended up owing about 5K unexpectedly and had to raid various funds to cover it, too.

  3. LittleMissSplendid Says:

    Assuming you're talking about federal taxes, yes you can request a payment plan. Sometimes that is more hassle than its worth though. If money is really tight perhaps you could pay a lump sum and then ask for a payment plan for the rest?

  4. Nika Says:

    It does suck to unexpectedly be 8k behind. But I would rather sell off some stock than make a payment plan. This should be the last resort.

    We will also have to take the money we designated for our son's 529 (but did not transfer in yet) and put it towards the taxes, and work hard to replace it later.

    But the almost 6k in our vacation/maternity fund will take a long time to replace. And I was planning on increasing it with DH's teaching paychecks. Now that plan is gone.

  5. LuckyRobin Says:

    On the bright side, at least you have the money to pay it. It would be so much worse if you did not. It is hard to lose the money you have worked hard to save, but better that than to pay interest on a payment plan.

  6. DecisiveParadox Says:

    That sucks.
    Leaves you with the whole 1 step forward 2 backward feeling.
    I hope you guys turn it around and next year get a 8k return :P

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