It’s tax season, and we just finished filing our taxes, and the results are not what we hoped for. To complicate matters, Turbo Tax has a problem with the Kansas return, which has been rejected, we find out this is because Turbo Tax has a problem with Form K-40SVR, which does not apply to us, we are neither seniors nor disabled veterans, and we have to wait for them to fix their system to re-file.
Usually, we receive a $3,000 to $4,000 tax refund, thanks to child tax credits, but this year, due to earning 12.4% more than in 2021, that number was reduced to double digits. Filling in the numbers from form 1095A (Health Insurance Marketplace Statement), our refund dropped from $1,800+ to just $179 as we received too much ACA advanced premium tax credit in 2022, having to pay back more than $1,600.
We were hoping to pay off a couple of credit cards with our federal tax refund, but obviously, that is not going to happen now with a net refund of $35 after factoring in the $81 filing fees and $63 owed to the state of Kansas. These credit card balances have been run up due to medical costs since we have an inferior Marketplace plan, for 3 times the cost, you can read about our medical insurance woes here.
Obviously, I’m in no rush to file our state taxes as we owe $63, so I’m happy to wait for our federal refund to arrive, so at least the money we owe the state of Kansas does not come out of our own pockets.
Next year, it will get worse, as we can only claim one child as Conner has turned 18, and our income will increase significantly, due to Erin having a full year of SSDI (disability), in addition to (hopefully) a full year of part-time employment and I am earning about 4% more than 2022, so a combination of this will mean, we are likely to owe more than $2,000 in taxes, which I have no idea how we will pay.
