A REAL Day Off

As you read this, I will be taking the whole day off of work to do absolutely nothing.

Well, of course I have a to-do list. I wouldn't be me if I didn't! I need to catch up on nagging life stuff:

• a trip to the library (always a pleasure, although lugging the ten books I get isn't)
• I need to get a new toaster (last one fritzed out on me Monday AM; the last, cheapest one lasted 3.5 years, not too bad!)
• I really want a full length mirror for the bathroom/my room
• I want to buy a few snacks
• I need to get a birthday card for my Mom
• I need to make sure my dental insurance in the US is definitely canceled. I've written them 3 times and my parents keep getting bills.
• I want to buy contents insurance.
• I need to do my house cleaning chores.
• I should do my US taxes.

My only major goal for the day, though, is to NOT think about work. I purposely took this Tuesday and Wed. AM off because I have to start a new project on March 1, and I wanted to finish up my old projects and have a bit of mental breathing space afterward before the new ones start. Tomorrow is a no work email day. That is a little scary...I constantly check my work email; it is a compulsion, like a nervous tic. I've had to stop myself twice just this evening (it is Monday as I type this).

Funny enough, I'm not doing work tonight but I am perusing blogs that focus on my chosen career field for pleasure. It seems that I can't tear myself away... :)

I'm Not Ready for the Stock Market

Ooooh. I just learned something.

One of my financial goals for 2011 is to invest in a stock through Sharebuilder to learn about the stock market. I have had $100 in Sharebuilder, ready to go, for the last few months ($50 was free!). But I haven't been able to pull the trigger and buy a stock yet. It's the same paralysis that hit me before I opened my Roth IRA, only this time much, much worse. I thought that I was ready for it!  I thought I knew what S/E ratios were and how to buy stocks...can't be that much different than buying funds, can it?

It can. I'm utterly confused and don't want to make a mistake, even though that is what the money is for. I wanted to learn more about the stock market and what better way than to invest a little pocket change, give the challenge some teeth?

Yeah, well, I need to go get Stocks for Dummies and read it again, because I can't figure it out. I think I want to buy Google stocks, but that shiz is over $500 for one share.  There's no buying partial stocks, so Plan B. Every company I think of to buy into is more than $100 a pop.

But anyway, who wants Google stock?  That's the easy way out. I need to find and invest in some little known company with fantastic potential, using research to learn about these stocks. That is the right way to do it.

I'm also concerned about the tax implications. My US-NZ tax return is complicated enough, living overseas like I do...buying and selling stocks will just make my head explode.

I think I need to put this endeavor on the back burner until I have more time (and a tax accountant).

$400 USD Richer

Just like that.

I came back from my work trip today and checked my mailbox. With a sinking heart, I saw that I had an envelope from the US government. Their envelopes are quite distinct, with their stern, small, and narrow writing exuding heady power. Or maybe that's just my imagination.

But when I opened it up, it just contained a check with my name on it for $400 from the US Department of the Treasury. Awesome!

And then I got worried. Who just sends you money for no reason? No documentation came with the check--it was the only piece of paper in the envelope. I knew that I wasn't owed a tax refund from my 2010 return, and that we are in debt up the wazoo, so it probably wasn't a stimulus check.

Or was it?

This  and this post was somewhat helpful in my search for an explanation. While I have been living overseas, not paying much attention to tax laws in the US except where they concern international citizens, they made some adjustments to federal withholding tax to allow more take-home pay to get to workers in the 'Making Work Pay Tax Credit'. I didn't even know about this, and even if I had heard about it, I would have thought that I was ineligible due to my overseas status. I certainly wouldn't have (and didn't) add the credit in on my tax returns.

It is a mystery how I still got the money even though I didn't fill out the special form (Schedule M, apparently) and include it along with my return. It also makes me think that I could have claimed in 2009--no check appeared last year.

So I'm satisfied with the explanation now, but still a little confused about my eligibility. But hey, it is addressed to me in another country, so...

Thanks, USA! I wish you had kept the money and fixed more problems, but since you went to all the trouble of cutting me a check, I'll put it to good use.

Oh Taxes

Doing your US taxes are so boring when you know you have no hope of getting anything back nor owe (i.e., you solely earn wages in a country where the foreign income exclusion law applies).  The End.

(but at least they are done.)

On Giving Up US Citizenship

This post is pursuant to my last post about having to report my income to the IRS in the US. Even though I'm a permanent resident here in NZ, curiosity has led me to seriously research the process of giving up US citizenship.  It turns out that that practice has a huge following, and it is all for one reason:  taxes.

Unsurprisingly to me, there are many Americans who've 'made it' and decided to give up their US citizenship so that they don't have to report their income to the American government, and be responsible for paying a large chunk of it for taxes.  Many move to St. Kitt's, an island renowned for their no-income-tax policy.  Imagine that...not having to worry about taxes!  What a life.

We are taught that having that American passport is more valuable than gold--it is a ticket to the promised land, nearly.  But would it really be that bad to only be able to visit the US for a maximum of 90 days, in exchange for tax ease?

Right now, that question is moot for me--I make less than the foreign income exclusion amount of $92,900 per year, so don't have to worry about paying lots of taxes over what I pay here in NZ--but when I become a millionaire (it WILL happen), I can seriously see myself weighing the benefits vs cost of giving up my citizenship.  I do have to deal with the headache of filing taxes every year, and with each year that passes, that practice seems more ridiculous to me. It is a time consuming, headache-inducing chore that only Americans have the 'right' to endure from overseas. I make chump change and I still have to spend two weeks a year preparing my return.  America is great, but not THAT great.  Really.  The main complaints I have here in NZ are that things are a little bit more expensive and I can't find the kind of cheese puffs I like.  Of course, I complain at great length about these things, but they are NOT major hardships by any means!

So, only time will tell what happens with my US citizenship.  I was happy to get out at a time when the political scene didn't reflect my own, and I think the politics still are nowhere near I'd like them to be. Living in NZ has really made me realize how RIDICULOUS we Americans are sometimes, not just with politics, but how we act in regards to religion and basic human rights, and how intertwined that all is in our government, despite the supposed separation of church and state. (end rant) The major fly in the ointment to giving up citizenship would be not being able to vote and sway the scene back to where I'd like it to be.  But, as many Americans feel, I do not feel that my vote is worth much in the current electoral process, but I do it anyway.

(P.S. On a side note, I'm only 2.5 years away from qualifying for NZ citizenship!  If I am still here in 2. and a half years, you'd better believe I'm applying for it.

P.P.S.  I won't really give up my US citizenship...I know how that could make people very angry with me and make me sound spoiled.  I am just cranky because of tax season.  I know I have until June to file because I am overseas, but I really want to get it over with.  And to think, Iused to LOVE doing my taxes!)

Pretty Sure the IRS Doesn't Accept "No One Told Me" Payments

I was complaining to two youngin's last night (23 and 24 years old) about having to do my American taxes every year, even though I live in New Zealand.  It is a HUGE pain in the butt, and I usually end up spending several weekend nights poring over exchange rates and making up excel sheets to explain each income category on my return.  The US is the only country that requires you to report your income even when you are living in a different country, and therefore, not reaping the benefits of any paid tax.  I seriously begrudge the US for this policy.  Uncle Sam is a greedy bastard.

Anyway, their reaction to the complaining was pretty priceless:  they both wide-eyedly said they'd NEVER done their US taxes, ever, despite one of them having a part-time job all through college, and the other having a part time job through college, plus a full time job here in NZ for the past year and a half.  Then one of them said, "No one ever told me that I had to file a return."

Uh...WOW.  I told them that I'm pretty sure you have to file if you make more than $600.  That is still true, right?  And if you get a W-2, it is pretty solid evidence that you need to file.

Ah, youth.  I remember those days, when I always thought that someone else was to blame for me not knowing things.  Yeah...nope, it will always come back to bite you.  I hope they don't get into trouble for being ignorant!

GST Increase

Yo New Zealanders!  If you have any big purchases coming up, do it TODAY (or TOMORROW).  GST increases to 15% on Friday, and you know what that means:  everything becomes more expensive!  I bought as many of my non-perishable staple groceries as I could carry today to try and save.

Whoa, $1K Tax Return!

Wow, happy windfalls!  In NZ, you don't have to file taxes every year if you don't think you owe any money.  You shouldn't have to file or owe any money, as employers and banks take the taxes out of your paycheck and accounts throughout the year.  If you do owe money, they tell you by sending you a Personal Tax Summary every year.  If you are owed money, you have the option to file whenever you want to claim that money.

Last year, I asked someone at a little tax kiosk they have throughout malls and public areas throughout NZ if I should file.  They said I was most certainly owed money, but it was better to wait until this year (I can't remember why).  So I did.  This year, due to a mix up at Kiwibank, I owed $6 on my 2010 tax return.  So, I filed my 2009 and 2010 taxes at the same time, about a month ago, paying my $6 and tried to figure out how much I was owed from 2009.

To my utter frustration, I couldn't exactly calculate how much I'd get back for 2009.  Because I was a part-year tax resident, the form said that New Zealand's Inland Revenue Department (IRD) would do the calculations for me and get back to me.  I provided my details and sent in the form.  I tried to do my own calculations, but I didn't know what formulas they used to calculated part-year tax returns, so I let it go after a while.  I didn't expect to get anything back until at least July, and I definitely didn't expect to get much back in the way of monetary return--the calcs I did, that made sense to me, indicated I'd get back a couple of hundred at the most.

However, today I check my bank account, and voila!  $1,038.15 NZD more in my bank account!  Fo sheezy, that is a windfall.  Guess where it's going?  :) (Please see my Goals on the sidebar.)

[ETA:  I would be remiss not to say that I just donated to a worthy cause just two days ago, and BAM!  Windfall.  :)  Don't think I don't notice these things, Universe/God/insert your own entity here!]

June Goals

11)  Research ergonomic mice for carpal tunnel.

12)  Make car rental reservations for SD and Boston.  *DONE*

15)  Clean and organize photo files.  *DONE*

16)  Clean and organize music files.  *DONE*

18)  Defrag and clean hard drive.  *DONE*

19)  Clean spyware, unused programs, startup files, and adware off of computer. *DONE*

20)  Make new backup restore point.  *DONE*

21)  Go to yoga or pilates or a dance or kickboxing class 1 x week.

22)  Strength train 3 x week.

23)  Call friend #1.

24)  Call friend #2.

25)  'Spring' clean apartment, from top to bottom.

3)  Make eye appointment; get new glasses.

1)  Floss every day.  *DONE*

4)  Save $400 above long-term savings ($740 total).  *DONE*

2)  Get teeth cleaned.  *DONE*
5)  Clean dust out of laptop. *DONE* (with questionable results...sigh.)
6)  Upgrade internal hard drive to 250 GB or higher in laptop as stop-gap measure--instead of new laptop!  *DONE*
7)  Order L birthday present.  *DONE*
8)  Pay tax owed.  *DONE*
9)  Pay difference in Kiwisaver by June 30 (to get full tax credit).  *DONE*
10)  Investigate if my fave american snack can be shipped over to NZ.  *DONE* (No.  :( )
17)  Clean and organize other files. *DONE*
13)  Host 1 game night.  *DONE* 

14)  Upgrade laptop RAM.  *DONE*

A Smarter Way

Once in a while, I'm smacked upside the head by an idea.  I've been giving to charity for a while, but never bother to take the tax break on the donation,keep my receipts, whatever.  I think that I feel that it's more charitable that way--if I don't get anything but the feeling of helping out, it counts more somehow.

However, I think I'll start trying to take the tax break, and then donate that to charity.  Why on earth didn't I think of this before?  I'm sure lots of people do it, but I just thought of it today as I made my monthly donation (this month, to Oxfam NZ, to their Samoan tsunami disaster fund).

Kiwisaver Taxes: An Introduction

The Kiwisaver is an odd duck to me: you pay taxes on your contributions like in a Roth. When you pull out your money, you don't have to pay any taxes on it (also like a Roth IRA), but unlike a Roth, you pay taxes on the returns as you go along. The Roth is an infinitely better deal. I have no idea how that works, if they take the taxes out every month (like they do in my savings accounts, BLEH), or if it is quarterly, or even annually.

Here is what I could get from Mary's book:

• The highest tax rate on returns is 30%, which benefits people that make over $48K (me, just barely).




• no one pays taxes on the $1K kickstart and the tax credits OR the employer contributions (so they are contributing 2% of your before-tax salary!)




• PAY NO TAX when pulling the money out (Although for us Americans, the US may have something to say about that. Stupid greedmonsters)




• ACC levy is NOT taken out (usually 1.5%)

Next up, a biggie: Trying to pick a provider!

(*Disclaimer: I AM NOT A FINANCIAL PROFESSIONAL; USE INFORMATION ON THIS BLOG TO MAKE DECISIONS AT YOUR OWN RISK.)

Information in this post taken from "The Complete KiwiSaver" by Mary Holm, published 2009.

More Taxes?

Yes...but this time, I think it's an excellent idea. Making unhealthy vices more expensive can only be a good move. Perhaps it will help fund a nationwide health care system? Oh...I can hope.

More Take-Home Pay or More Government-Provided Services?

I just ran across this article on Yahoo!

I've covered this before when comparing NZ vs. the US, but personally, I'd take more taxes if things like college and healthcare were free or very heavily subsidized. I suppose there is a limit to that, though. What if I weren't able to save anything on my take-home pay? I wonder if my viewpoint would change, and what I'd be willing to give up in exchange for lower taxes?

Still marveling...free college?? WOW.

WooHoo! Better Than A Raise!

Today I got the normal fortnightly email notifying me that my paycheck had been deposited in my bank account. Thanks to some changes to the NZ tax rates starting April 1, my checks will increase over the normal amount by ~$30 per paycheck!

I don't know why I'm so excited, that isn't not that much more money...but I suppose every little bit helps (especially considering my grocery bills :/). Because of the way that fortnightly paychecks work, this increases my average monthly income from $3,242.60 to $3,384.22 for the rest of the year!

At some point, I need to have my annual performance review that was promised to me in February. I've emailed my supervisors at HR (my company doesn't have its own HR division, we are one of many companies managed by an umbrella company that handles all of our contracts/hires/fires/etc.), but no one has responded yet. How do I make that happen? I was promised a $2K raise if my review went well, as well, so I am pretty eager to have my review...

The Tax Man Cometh

When I double-checked my hand-calculations with the TaxCut free-file software online, I discovered that I am eligible for the Saver's Credit, for contributing $3100 to my Roth IRA in 2008! Hurrah!

That reverses my fate, and I now am going to get $103 BACK in a refund instead of owing the US Treasury a cool $97. WHEW.

I don't know what it is--$97 isn't that much money, but I really, really don't like oweing money on my taxes.

I also am getting $31 back from California (HAHAHA, yeah right I'm getting a refund...maybe in 2020!).

Anyway, I'm just happy not to owe. And finally, contributing to my retirement funds pays off a little--Lord knows when I'm going to be seeing a gain from my actual funds!

Spending:
$9 office supplies
$170 Pilates and Pussy Cat Dolls dance classes! so exciting!

Lil Update on Alone Weekend

1) I'm looking over some old journals. They are quite informative. I wish I could get back to my 2002-2003 self. Even though I was terribly naive, I was super-happy! Sometimes ignorance DOES = bliss.

2) I did my taxes last night. I THINK I OWE $100! HOW IS THIS POSSIBLE?? Must re-do.

3) Slowly converting to a non-cc lifestyle, and paying for everything in NZD. It's painful paying that credit card with New Zealand Dollars. Still to convert: my skype payments, and my electric bill here.

4) Not sure what to do today. Tomorrow I need to go grocery shopping, and call a lot of folks to whom I owe phone calls, but today is kind of a blank slate. It's raining, too, so I don't particularly want to go outside!

5) XBF has conveniently disappeared for the weekend thus far. I'm trying not to miss him, and to revel in my Alone-liness. Sometimes it works.

Sweet, Sweet Alone Time

The clock started on my Alone Weekend around 7 pm tonight. It's only been about two hours, but already, I feel so much better. Laptop loaded with internet access, check; door shut, check; a few borrowed movies, check; some snacks--I'm good to go.

My to-do list is miles long (at the top: taxes. finally.), but I'm just so happy to be alone! and not in a car driving in the rain to some internet-less, cell reception-less spot in the middle of the North Island. Normally, I'd opt for the latter (I HEART road trips!), but not this weekend. This weekend is MINE.

A little bit of calm just diffused into my bloodstream...

Some happenings:

1) Today I made my permanent residency interview appointment. Next Thursday at 12:30 pm. I'm not nervous yet but I know I will be! I also need to practice answering their most-asked questions this weekend.

2) My boss pulled me aside today and said that she needed to meet with me next week to discuss my future. I had a performance review written into my contract for February, but hadn't gotten around to asking for it, because I feel like I've been doing a bad job lately, what with my emotional roller coaster and all. I wanted some time to redeem myself before I asked for a review. Looks like she remembered, though! She also gave me a new task, and one that has more responsibility attached. This time around, with THIS job, I know exactly what I want to ask for. I will also mention my interest in a PhD, but I need to figure out what I actually want to do with my life, if I continue this career path...

3) I've been ignoring my blog lately, and it shows. Any suggestions on improvement (beyond a writing class, that is...I know I have some work to do on my grammar/composition)?

4) I had a doctor's appointment today to get a few refills on prescriptions (for low iron and eczema). Doctor is still not taking me seriously about feeling tired due to thyroid issues, but i'm hoping to get my iron levels up to snuff, at least. Thanks to my insurance through XBF, the appointment and the two refills were FREE. Gotta love the NZ system.

Spending:

$2 Dr Pepper (a treat!)

I can't wait for March to start so I can start my budget with a clean slate!

PS, Happy Birthday to my Mom! (she doesn't read this but I thought I'd put it out there in the world. Her 60th b-day was technically yesterday but it's still the 26th in the US. Wow. 60. Wonder where/how I'll be in 30 years??)

2008 Taxes and Spending: Rent

I am evaluating my spending of 2008. This post focuses on Rent.

The first five months of 2008, I spent $750 on rent ($3,750 total). I then went home for June-July, moved to NZ in July, and BF was taking care of rent in exchange for me paying for groceries. I was unclear about how to count that, but decided to only count what I actually paid in rent--and therefore the total will be a little underestimated; likewise, groceries will count as groceries and will be higher than normal.

Rent in the US ($750/mo): $3,750
Rent in NZ: $4,838 (includes bond that I will get back in full once we move out)
Total Rent: $8,588 ($716/mo)

That represents 35% of my after-tax 2008 income, or 27% of my before-tax 2008 income.

Not bad, but it's mostly because of no rent in June, a break with BF paying, and the fact that our rent in our last NZ place was about $650/mo ($300/week). Cheap, but CRAPPY.

All right then. That wraps that up. In 2009, unless our landlord raises the rent, I expect to pay $913/mo, or $10,956. I hope I can offset that by renting out our garage...hmmm.

2008 Taxes and Spending: Roth IRA Contributions

As part of my tax evaluation, I'm also evaluating my spending in 2008.

2008 Roth contributions: $3,100

(about 10% of my after-tax income, ~12% of my before tax income)

All to my T. Rowe Price US and international indices. They are SUCKING right now, and are barely worth $3,100. Over the years, I've contributed twice that amount. Blah, blah, blah, economy.

I didn't make my goal of $5K this year, but I didn't do too shabby.

No taxes are owed on these contributions, as they are AFTER TAXES (hurrah!). I have a feeling that taxes are only going to go UP UP UP in the future, given the current Social Security and National Deficit debacles.

I am banned from contributing money to my Roth IRA this year (tear), because I won't make enough US income, as I understand it. Even though I will have ChaCha US income, I have to make over a certain amount in order for it to be considered 'taxable income' and therefore eligible for Roth contributions. This explains more. When I tried putting in various amounts in the tax form in H&R Block, it also gave me an error for every amount.

I have so many questions still to answer:

do I pay state taxes on the NZ income? In that case, to which state, Cali or my home state?

Do I pay New Zealand taxes on my ChaCha income?

Started Filling Out My Tax Forms

Whoo boy, it's more complicated than I thought. I don't pass the necessary tests in order to claim the foreign income exclusion, though I may be able to claim a foreign income credit...good thing, because without the credit, I end up owing Uncle Sammy over $2K. No likey that number.

The issue is that my NZ tax is taken out every two weeks, so I'm going to have to research the average daily exchange rate on each paycheck, and convert each of my NZ paychecks to USD. Or, I can do some sort of voodoo with the average annual 2008 exchange rate, but since the rate was MUCH higher the first half of the year vs. the last half of the year (when I was actually paid), I would end up getting less credit. I think. I need to look at the verbiage closer, but I think I'm going to have to do all the work before I can decide which is more favorable...argh. Good thing I like money!

In other news, BF? left for a work trip this past weekend, and was supposed to get back tonight, but so far, he isn't. And I really, really miss him. What is WRONG with me? What happened to all my revelations and fresh attitude? :( I wish things were back like they were when he actually liked me. I'd be a whiny girl to ask him this, but why doesn't he like me? It's weird, because it feels like one day, he was all about being with me, moving to be with me, etc., and then almost overnight, he couldn't stand to be around me. I just can't figure it out, and I keep going over it in my head when I should be sleeping or eating or working. Ugh, guys. I think I'm going to organize a happy hour with my coworkers this Friday so I have an excuse to drink and not think about this for just one evening. :) (which may backfire...he IS one of my coworkers...)