Eeeek! Good Financial News
Today I learned that the pathetic cost of living increase I get from social security is 3.3%. But it's almost enough of an increase to offset the cost of Medicare without the prescription plan. I think I've decided not to do the prescription plan, since Walmart is now offering $4.00 prescriptions for all generics. Pretty much all my meds are generic and it will cost less than paying for the presciption plan. So Go Walmart. You totally suck on every other level, but hey, prescription coverage is good news for me.
Then, I had to call the IRS about some little piece of information and found out that all the back taxes I still owe after years and years of paying them off are going to all go away by May. May 2007. That's the banner month for me. No more several hundred dollar a month payments. I owe the money, I've been paying it painfully for years without complaint because it's my debt. But it's almost over. A light at the end of a very very long tunnel.
You see, I owned my own consulting business for 10 years. I had people subcontracting for me, but they were not my employees. Then the law changed, and the IRS decided that my subcontractors were employees and charged me back taxes for them. 12 of them. It was probably the worst setback I've ever experienced. From financial freedom to crushing debt in an instant. Man, did that suck. But I made the error (OK, the IRS changed the rules on me and I didn't keep up with the law) and I've been paying for my mistake for a very long time. Like since 1996. Ten long years of servitude to the IRS. Painful? You bet.
But it's almost over. One year ends this month. The next year ends in February. The last year ends in May. And then it's over. OVER. I cannot even begin to tell all you readers what a huge relief this is. For years my attorney told me to declare bankruptcy to get out of the debt, but I didn't want to. I wanted to see it through, and I finally have. It has been a terrible experience. But all of a sudden I'm going to start having more money. Not a huge amount by any means, but a couple hundred bucks a month and then some of extra money. Money that can pay for things we really need. Money that will enable us to maybe have some sembelance of a life.
Phew! Stumble It! JBlog Me