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Story 181 for Stupid Tax
Expensive bicycles
Original story submitted by Josh
on May 3, 2012
Location:RTP, NC
Age: 25-34
Gender: male
on May 3, 2012
Expensive bicycles
My wife and I decided it would be a good idea to buy a couple of bikes. Unfortunately, the first time I rode the bike, I found out that I didn't like it. A year later, the bikes have been sitting on our porch, unused. We managed to sell them for half of what we bought them for. I recommend test driving or renting something like this before purchasing. Could save you a few hundred dollars to figure out whether or not you like something!
5 of 6 found this story helpful.
3.7 out of 5
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Story 182 for Stupid Tax
Cashed Out 401k to be "Independent"
Original story submitted by Stu Pidly
on April 27, 2012
Location:Bozoville, DC
Age: 35-44
Gender: male
on April 27, 2012
Cashed Out 401k to be "Independent"
Got weary, restless, and really STUPID with well-paying job. Had $200k in 401k, so quit job and put 401k into IRA brokerage account.
Stupidly thought I could trade my way to financial freedom and make enough to pay bills, including tax penalty of withdrawals from IRA.
Long story short: Didn't make much, certainly not enough to pay bills, and had to draw down IRA account to survive. Now desperately trying to find a decent job before IRA runs out, and owe big bucks to IRS. Stupid!
18 of 19 found this story helpful.
4.4 out of 5
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Story 183 for Stupid Tax
Diploma in Stupid Tax
Original story submitted by April
on April 23, 2012
Location:Ontario, Canada
Age: 35-44
Gender: female
on April 23, 2012
Diploma in Stupid Tax
I used a brand new credit card with an exceedingly unhealthy limit (and a 19% interest rate) to go to a "private career college" to pursue a 2-year diploma in alternative/complementary heath care. (Yes, dear readers, this is the part where you slap your forehead; wish someone had slapped mine.) As a matter of interest, I was already carrying some consumer debt and working only part-time to support my family.
I graduated successfully after spending many thousands of dollars but as it turns out, my credentials aren't worth much here in my province. (As an alternative health care practitioner I'm in direct competition with our provincial health care system and I live in an economically depressed area.) I'm now many thousands of dollars in debt for an education I'm not even able to use and scrambling to stay on top of my payments while I work through Dave's program on a poverty-line income. To top it all off, I will be spending more money and time going back to an accredited school to start working on a degree I can actually use!
You can bet your cut-up credit card I'm researching my next school AND the programs AND doing a preliminary job search with a fine toothed comb to make sure that:
a) I'll be highly employable when I graduate
b) I'll be qualified for a position with a good salary that will allow me to live AND pay down all that stupid tax from my last educational decision.
Stupid, stupid, stupid tax.....
40 of 44 found this story helpful.
4.2 out of 5
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Story 184 for Stupid Tax
bigger isn't better...i sold the car
Original story submitted by Jules
on April 18, 2012
Location:rural washington state
Age: 45-55
Gender: female
on April 18, 2012
bigger isn't better...i sold the car
i've always liked the shiniest and the best. when i "needed" a new car to transport a troupe of teens (my husband and i were foster parenting teenagers)i refused my husband's advice that we get what served our needs but didn't cost the most. i insisted that we get the biggest and the best. it was a one year old ford expedition. it had every everything a new car could. it was 54K new. i paid 39K 1 yr old. i drove it for two years. the cost of the down payment (6K), the monthly payments (700.00), insurance, gas (it took more than most vehicles), new tires (pirelli), repairs (my daughter backed it into another car) totalled $26,000. i took the FPU class and decided i needed to sell the car. i knew i had to sell the car. i ended up paying $2,500 for the dealer to take the car back. total cost to drive biggest and best SUV for 24 months $28,500. what do i have to show for it?? a stupid tax story AND respect for my husband's conservative opinions
33 of 35 found this story helpful.
4.7 out of 5
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Story 185 for Stupid Tax
Did a Refi via early use of IRA :-( AMT bit me
Original story submitted by CraigEvans
on April 16, 2012
Location:Indianapolis, IN
Age: 35-44
Gender: male
on April 16, 2012
Did a Refi via early use of IRA :-( AMT bit me
I wanted to lower my monthly mortgage payment, take mortgage from 23 years left to 15 year loan, and get to 75% ltv. I brought about $41k cash to the table by withdrawing about $25k from and IRA and selling some long term gain stocks. Now I owe the IRS 10k and it's April 16th. I knew about the 10% IRA penalty and stock sale cap gains, but I forgot that the funds received would send our two income family of 7 above the AMT threshold. I'm going to have to pay the IRS via credit card. I pay my debts -- I don't default, but I'm afraid my proper moral act of paying by bills will not benefit as much as doing the wrong thing and relying on a future government bailout of underwater homes or credit card default.
4 of 8 found this story helpful.
3.0 out of 5
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Story 186 for Stupid Tax
Our Daughter was killed by a drunk driver
Original story submitted by Chris
on April 13, 2012
Location:Rhinelander, wi
Age: 35-44
Gender: male
on April 13, 2012
Our Daughter was killed by a drunk driver
On June 30th 2006 our daughter Kayla was killed by a drunk driver. We were broke, in debt and no insurance. We had to barrow the money to make it down to Texas for the funeral. My Ex and her husband and my mom managed to scrape the money together for the funeral. We went home and took out 20,000 cash out refinance loan on the house to help out with cost of the funeral and pay off some our debt including our truck that my parents fleesed for us. We were told that in two years we could refinance again to get our interest rate down.(If our fico score was a little better.)A year later my score was a little better but not good enough to get the rate lowered. On The BANKS advices I bought two cars and a van and got three credit cards to improve my score. Taking our debt over 200,000 and our house is still at 11.85%. in the last five years WE have paid down our commercial debt 40,000. since we took fpu at our church we paid another 10,000 in three months now our credit cards are gone we have a small emergency fund and we paid off the van. once we finish paying our stupid taxes WE WILL BE DEBT FREE!!!!! Free to give more Free to live more, Thank you Jesus. Still better than we Deserve.
17 of 18 found this story helpful.
4.3 out of 5
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Story 187 for Stupid Tax
The Things We Learn From Our Parents
Original story submitted by JNS0604
on April 11, 2012
Location:NV
Age: 25-34
Gender: female
on April 11, 2012
The Things We Learn From Our Parents
This is my parents stupid tax story, it’s long but I promise it’s all true (sadly).
When I was in Middle School (in the 90’s) my parents went to sears to get my brother some new shoes and came home with a brand new 60 inch big screen (we could barely afford our rent each month). The cashier had asked them if they wanted to apply for a store credit card and they did. They were approved for a $3500 credit limit so they bought the shoes, trekked over to the TVs and walked out with the big screen for around $3000. Later when I was near the end of college (2005) I was watching my dad do bills and noticed he was making a check for a Sears payment so I looked at the statement, somehow his $3000 dollar TV from the 90s had turned into over $9000 still owed and he hadn’t even noticed! He just made the payments each month and didn’t think twice. My mom was our primary earner (as a waitress) and had a couple periods in between jobs. Apparently she had signed up for some ‘payment protection insurance’ that allowed her not to make payments when she wasn’t working, she didn’t understand those payments still had to be made at some point (they weren’t actually making payments for her) and this allowed them to increase her APRs as well. I finally had a friend that was a lawyer get it settled for them so they no longer had to make payments but I don’t even want to think about how much they actually paid for that $3000 tv over the years.
You’d think they would learn right? Not even close. In 2007 my dad had almost paid off a nice double cab truck, they moved in with my aunt who was too heavy to fit ‘comfortably’ in the back of his truck (she had a car of her own) so he went and traded it in for a bigger truck and a bigger payment; my parents and my aunt had a falling out and she moved out of town less than a year later. One day my parents went to the dealership to do some maintenance on my dad’s truck and my mom came home with a brand new 2007 PT cruiser, because ‘it wasn’t fair that she was the one that worked and he got all the toys’. So now they were paying over $800 a month in car payments.
Fast forward to 2009, my mom calls me one day and tells me she just got a cool new car. She traded in her PT cruiser (that they were upside down on) for a brand new Dodge Nitro. They had gotten a flyer in the mail for $2000 off the sticker price and on top of that the dealership was willing to pay off what she owed on the old car; she did not realize this just meant the balance would be rolled into the new loan. Who buys a car based on a flyer?! My parents. About an hour later I got a second call that my dad also bought a new 2010 truck hot off the lot; why? Because he liked that color better than the one he had! They were now making almost $1400 in car payments and complaining about not being able to afford rent; they could make a MORTGAGE payment for that price.
By the end of 2010 they were in the process of filing bankruptcy when my mother died suddenly. My dad received about 20k in life insurance. He had gone through with the bankruptcy and lost both the cars. He was talking about using some of the money as a down payment on a new truck; my siblings and I convinced him to pay cash for an older smaller truck as he didn’t have kids or a wife anymore and didn’t need something so big. I was so proud of him the day he bought that truck, in cash. Until I stopped by to visit him and he was setting up a new big screen. He said he went down to buy it with cash but they offered him a 20% discount if he opened a credit card (how he got approved I don’t know) and on top of that he gets 20% every time he uses it; I told him I wasn’t sure it worked that way when he later went to buy a laptop he found out I was right, the 20% was a one-time thing. He said he bought this new TV on the card but was going to pay it off when the statement came in. I asked him last month if he had paid it off, he said “yeah I pay it off every month” I wanted to SCREAM. Sadly, some of the greatest lessons my parents have taught me are what NOT to do.
109 of 111 found this story helpful.
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Story 188 for Stupid Tax
From Zero to STUPID in 6.2 seconds
Original story submitted by Rich Lane
on April 9, 2012
Location:Louisville, KY
Age: 45-55
Gender: male
on April 9, 2012
From Zero to STUPID in 6.2 seconds
Three years ago, as I was driving my son to the car dealer to purchase his first car, the fuel pump on my SUV went out. We had the SUV towed, and then called a friend to drive us to the dealer. When we got there, they had a Crossfire Roadster parked right out front. Although we started out to buy my son a car, I managed to convince myself that the fuel pump going out was a sign that I needed a new car. I told the salesman to, "Make it happen!"
Without any negotiation what-so-ever (and with no money down), I was able to secure 100% financing. To make matters worse, I called my wife on the way home to tell her I had a "surprise" for her. (Boy - was she ever surprised!)
All in all, I think I'm easily a front-runner and finalist for the Stupid Tax poster child. Fortunately, my wife and I attended a Financial Peace class later that same year, and we have since paid off $225,000 of debt. We still have $30k to go, and we actually had the car sold at a significant loss. The buyers backed out, so my wife and I held an emergency budget committee meeting and decided to keep the car. We jointly agreed to pay off the loan that month, and affix a “Stupid Tax” bumper sticker as a testament to our formal financial plan. We now teach Financial Peace, and hold up our own previous behaviors as the example of what NOT to do!
41 of 44 found this story helpful.
4.9 out of 5
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Story 189 for Stupid Tax
Timeshare
Original story submitted by edgeofspear
on April 6, 2012
Location:Destin, Fl
Age: 25-34
Gender: female
on April 6, 2012
Timeshare
My husband and I bought a timeshare for 15K. What was I thinking? As soon as we left I felt something was wrong, so I asked my husband what we could do. He started looking through the paperwork, and it turns out with real estate transactions, you have 10 days to reverse the deal if done in writing. We sent a letter that night, returned the welcome kit the next day, and our money was back to us in no time.
Don't be embarrassed to ask for your money back if you don't like the deal. We called the timeshare seller, and he tried to talk us out of it, but once we told him we had mailed the letter, he was shocked that we had actually read the paperwork. I will never do this again.
21 of 21 found this story helpful.
4.5 out of 5
rated 4.5 by 19 people
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Story 190 for Stupid Tax
Not on same page as spouse and got Fleased
Original story submitted by comp_parter
on April 3, 2012
Age: 45-55
Gender: male
on April 3, 2012
Not on same page as spouse and got Fleased
This is a huge stupid tax. I was not listening to my spouse when we were having an argument over our car situation back in February of 2007. She was not happy with our 2000 Ford Focus because it was not big enough to carry all the things that she needed for her job. So we went to look at minivans and ended up leasing a 2006 Toyota Sienna. I was trying to beat the salesperson down on payment and we ended up getting switched off to a lease payment that was a lot less. 3 years later and 50,000 miles over our fleased miles we decide to keep the van and pay it off. What a financial tail kicking that was... It's finally paid off but now it's only worth about 6000.00. We were not on the same page that day and that cost many thousands of dollars. Please do not follow in our foot steps. I didn't listen as well as I should have. We were not on the same page that day and we signed anyway. This was a horrible mistake.
Don't Flease! Don't Impulse on a vehicle! Breath, reconsider and save your money. Do you hear the voice of regret??
15 of 16 found this story helpful.
4.7 out of 5
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