The Tuesday Twosome

1. “Eek, I owe” or “Show me the money!”
Both actually. Here's how the state of Minnesota has screwed me for the past couple of years. I was in AmeriCoprs for two years and for each year of service I earned an education award of $4750. When I go to school, I tell the Corporation for National Service to give the University of Minnesota $4750 for my tuition. One payment in the last tax year, 2005, and one payment in this tax year, 2006. The full amount goes to school and no taxes are taken out of it, however it is seen as income. So when I fill out my federal taxes, I claim this as income. No matter, I get a huge credit for paying tuition. The IRS helps Minnesota to screw me (although it helps everyone else and I don't want them to change it) by giving me a credit for the tuition and not a deduction. So I get a big refund from the IRS. However, when I report my adjusted gross income to Minnesota there's still this $4750 that I haven't paid taxes on and Minnesota doesn't give me a nice credit for being in school. So my federal tax return usually winds up covering the taxes I owe Minnesota. Why is Minnesota screwing me? Minnesota used to be the only state in the country that considered the AmeriCorps education award non-taxable income. It's not like they don't get the whole damn thing back when I go to their schools and pay off my loans anyways.

2. “Finished!” or “How do you file for an extension?”
Usually I'm early. The past few years I've been early because it's nice to get the extra cash back. Not so much this year...

3. “Taxes suck” or “I don’t mind because some of it goes for good causes.”
I think taxes are necessary. I've been to countries that have no tax base. You think our roads are bad? I also saw what happened when Governor Pawlenty was elected and promised not to raise taxes in the midst of a huge deficit. He didn't raise taxes, suddenly I couldn't get health care coverage, my library was never open and we had fewer police officers and fire fighters. And Bloomington Ave. will forever be full of bumps and potholes I'm convinced.

4. “1040EZ!” or “How the heck does anybody understand all of this?”
I can usually understand taxes and often wind up helping other people fill theirs out.

5. ”Receipts? What are those?” or “I keep everything just in case.
I just realized that if I buy this house I'll have to itemize my taxes and so do need to keep all my receipts. I think I've still got most of the important ones.