I live, write, and garden in the PNW with my husband of 28 years, disabled daughter, adult son, and my 84-year-old mother. We have paid off $250,000.00 worth of debt (if you include the interest) in the last fifteen years and as of 6/12/2020 are 100% DEBT FREE!!!!DH finished doing our income taxes and for the first time ever we are going to owe money. We also didn't qualify for any of the child credit this year. We knew it was coming because of the contract buyout lump sum. They did send a substantial portion of it to the government in taxes, but we figured it wouldn't be enough. They warned us it probably wouldn't. It'll be almost $6000. Our EF is $8200. I don't want to touch that.
On the other hand, if we take it out of our credit card repayment plan for the next 3 months we wouldn't have to. We are currently sending $3500 to debt repayment each momth. The problem with doing that is interest is at .9% in savings and the credit card we are repaying is 11.4%. If we paid the almost $6000 out of the EF we would still have $2200, plus whatever we contribute the next 3 months which will at least be $100 a month and whatever else I can manage to scrape up. So $2500 at the very least will be left in the EF if we do it.
I think we probably will even though having $8000 in there was something making me feel very secure. I just can't see hobbling our repayment plan. Maybe I can go halfsies. Take $3000 out of the EF and $3000 out of the debt repayment plan. Still that interest. I don't know. I guess I have some time before I have to make the decision. We don't get paid until the 18th so I'll spend some time seriously thinking about it between now and then.
Income Taxes and the EF
February 9th, 2011 at 02:13 am
February 9th, 2011 at 02:59 am 1297220342
February 9th, 2011 at 04:50 am 1297227008
February 9th, 2011 at 06:53 pm 1297277609