Micole has to go to school to get it ready for next week. They have a little day called Ready Fest, so I took the day off to care for Coop. I'm typing with one hand while holding Coop in the other arm, so pleas excuze any tipos.
Grandma Stella got mad with me for not posting photos yesterday, so here are a few that we missed.
A photo from Tuesday.
We got in late last night so here is one of the few surviving photos from Day 139 of Cooper's life.
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Mommy gives Cooper a hug goodbye this morning.
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Cooper grabs her hair and tells her not to leave.
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I've already changed a poopy diaper this morning. It's been awhile since I've had to and it's changed a lot. Much more solid and way more stinky. Whoo!
Speaking of stinking... How about that IRS? Aren't they just great? I got a letter from those brainiacs saying that I owed them a bunch of money plus interest. They said I didn't report a debt cancellation, which I didn't. BUT... Under certain circumstances a student loan cancellation can be tax free. AND... Micole meets all of those circumstances. Did they even think that we might qualify as the exception to the rule or did they just have a computer spit out that we didn't report the debt cancellation as income? Did they even notice that she works as a teacher in a school district in the state of Kentucky, so she is likely in a group that is eligible for tax free handling of student loan cancellation?
I almost think it's some kind of harassment practiced by the IRS. They're thinking is that you don't know the tax law, so you might just pay it. However, I've got a Master's in Accounting, I've passed the CPA exam, and I have taken numerous courses on tax law. They're not getting this one by me.
4 comments:
Hello! Just dropped by today. Cooper is a darling.
You've got me curious about the debt cancellation. What is it? Does it mean you paid of a school loan early?
According to the IRS "If a federal government agency, financial institution, credit union or other lender cancels or forgives a debt you owe, you must include the amount in your income".
My wife works as a teacher in Kentucky. The Commonwealth of Kentucky, through it's student loan program, will forgive student loan debt if certain critera are met. In my wife's case every year that she works in Kentucky as a teacher in a public school, they will forgive a portion of her student loan debt.
The IRS is saying "Hey you had your debt canceled so you had more income and thus you owes us more moolah." There are, however, some situations that the debt cancellation is not considered taxable. The main reasoning for this is to incentivize people into certain jobs, such as nursing, teaching, the Peace Corps, and so on, where there is an undermet need. I won't go into all of the criteria, but being a teacher she meets all of the criteria.
You go bite the IRS back!
That makes much more sense. So basically they almost want back taxes (plus interest!!??) for the added "income" provided by loans during the college years. In my opinion, those loans turned into scholarships once they were forgiven. And I'm sure all of that "scholarship" money went straight to tuition, fees, and books. ;)
Yikes, leave the teachers alone already!
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