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Taxes almost done

February 4th, 2009 at 02:55 pm

I stayed up kind of late last night and finished off our taxes. I hadn't been able to take more than cursory glances at them since I got the last of the paperwork, and every time I did I got a wildly different estimate. So sitting down and reading through everything, double-checking numbers and all, I was pleasantly surprised that instead of owing about $300 (the worst of my rough estimates), we will be getting just over $2000 back.

What did I do wrong the other time I estimated? Forgot about the MN marriage credit, didn't factor in the portion of AS's education that was taxed as income (and therefore could get us a tax break), underestimated taxes NT and I paid in '08 (I only counted withholdings and forgot to add what we owed last year), and forgot to carry the 1 in one of my scribbled equations, a $1000 error. Smile

$2000 seems like a reasonable cushion for three people, especially since I did owe something to MN, so I don't think I'll change my withholdings (unless there's a way to increase MN withholding only). I don't mind owing taxes but I hate the possibility of penalties if you owe too much, so I'd rather play it safe.

Still trying to decide what to do with the money. We've been saving for a couch, so I may use about $250 to pay for that, and I think a small cash bonus of spending money would be much appreciated by the family. We've decided we want to do two days of outside-of-Vegas sightseeing rather than one, so I'll put about $60 in to cover an additional day of car rental, insurance and gas. I think those are the only things we want that we haven't already paid for, so the rest will probably go to the baby/emergency fund.

5 Responses to “Taxes almost done”

  1. Caoineag Says:

    Opposite here, always have a state refund and always owe the fed's just under the penalty. You can adjust them separately but its probably more trouble then its worth.

  2. cptacek Says:

    Just curious...how are you filing for three people? How does AS's tuition go on your taxes? Are you filing two returns for federal and two for state?

  3. ceejay74 Says:

    Caoineag, I think as long as we keep having a bigger tax amount every year on state, we won't get a penalty. If NT and I start earning less, though, I'll err on the side of caution with state withholding.

    cptacek, you got it. In the eyes of the U.S. government, NT and I are married and AS is single, so we file a joint married return and I prepare a single return for AS. Her tuition goes on that. All the things I mentioned above factored into my wrong estimates, but on different returns.

  4. gamecock43 Says:

    I didn't know they penalize you if you owe to much! ouch!

  5. kdmoffett25 Says:

    Yes, I am finding out that this year, but if you withheld the same amount or more, which in my case, it was more, they won't penalize you. At least I hope that is the case! LOL

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