Credit Vs Debt

I was posting that I have no credit, but also no debt. This is not entirely true as I still owe the IRS a bit and still owe on my student loans. Bankruptcy does not remove those two debts. I also have a teeny bit of credit, but not much.

I used to be, say 200K in debt with house, credit cards, and student loans. I also worked about 60 hours a week to pay off those debts, and I worked in very stressful situations for quite manic people most of the time. Even when my company was nice, I seemed to be involved with the maddest employees. I did have a few good supervisors and lots of good coworkers, but all in all, life was just stressful.

Now I work for myself, and I can be a bitch sometimes, but I don't fire myself if I talk back. So it's a lot easier to release stress. I don't make near the money I did, and because of the lack of credit, I really don't have as much. I do have a rood over my head, food in my stomach, and hot running water. Those are all wonderful things. I have a bed where I can get a good nights sleep too and a place to keep the supplies for my business, and I have a family and friends I love. I really don't need more.

So here's the balance sheet.

Stress + Debt = Nice house and things with very little time to enjoy or
No Stress + Little Debt = Rental cottage and times to enjoy life

I'm learning new things about life every day. She knows why the cage bird sings. I know why hermits live in caves and forage for food. Is there any land left in the US for homesteading?

The IRS and Me

It's getting near Tax time again, and here I go with my IRS dance. You see for the past - oh - maybe 7 years, I have owed the IRS some money. Long story, but it happened when I lost my job the same year the company I worked for piled some extra money on my income. They screwed up and it was supposed to go on a previous year (a year I made less money and wouldn't be taxed so high) but their accountant was a putz and didn't know how to handle the mistake.

So I owed the IRS a considerable amount when I had no money. I also didn't know you could call them and make arrangements with them. I thought they just piped out your bank account (like they did) and made you loose everything (like they did). But what I had in my account, wasn't what I owed. So I contacted my state representative (did you know you could do that?) and they connected me with a specialist to help. My taxes have been deferred until my income is enough that I can pay back.

The dancing issue is that the IRS forgets every year. It seems that each year has a different department and they don't work well with each other (talk about efficiency) . So every year I have to write them a letter, reminding them that I have very little income (like they can't just see that) and I can't pay what I owe. Basically, it's not tax, it's self employment tax that my earned income doesn't cover. That's what I owe every year since I've been self employed.

So last year I wrote and they missed my note and sent a letter out mid year. I explained again and they wrote back to tell me they will look into it. Finally at the end of October I got a letter, saying they were very busy, but they are still looking into it. And then I got another letter, and another letter, and another letter, every week until December 26th when they finally came to a conclusion. I was right.

Now I know where a good portion of the fiscal shortage is coming from, not from tax shortages, but government waste. Why did they have to send me 8 letters telling me they haven't made a decision yet?

And now it's tax time again, and I'm guessing I'll have to pay again and the dance will continue. At least next year I should have enough income to start paying down my debt. I hope the IRS and Me will continue to be friends after the dance is over :)