I did my taxes this week.
As my loyal readers know, I spent the first five months of 2011 in Southwest Asia, for which trouble I was reasonably well compensated. But did you know that, subject to certain limits which never applied in my case, money earned in a war zone is free of federal income tax?
It gets better than that. Between my tax-free earnings and 2 1/2 months unemployment, my adjusted gross income only barely covered my itemized deductions and exemptions. Which left me with a taxable income of: less than $2k. Needless to say, I'm getting every dime of the income taxes I did pay refunded.
It gets better yet. It turns out that, with two children and a taxable income of $2k, TaxAct.com qualified us for the poverty programs. That’s right: you, my good tax-paying readers, actually subsidized my refund by an additional $3k under the Earned Income Tax Credit, over and above the refund of the income taxes I actually paid!
Thank you, 53%!