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Posts Tagged ‘federal withholding’

What Form Do You Use To Declare the Pennies On Your Eyes?

January 14th, 2009 No comments

Last week I tried to estimate our tax return (boy, do I know how to have fun…) and it came out to where we would get back just enough in Federal to cover what we owed in State.  I was aiming to not owe or get anything back, but for some reason, I owe State income tax every year , except for last year.

But when I got my W-2, and our real mortgage statement, we’re going to end up getting almost $1000 back.  I’m pleased with this even though it’s not the result I was aiming for, and happy I don’t owe tax, like Quicken kept warning me all year long.  My wife seems to be all for getting that tax return money, sort of as a bonus, but I’d rather have the money throughout the year, as nice as that surprise income is.

Now I have to decide if I make any withholding adjustemts this year.  My wife now works part-time, and her gross is just under the threshhold for having Federal withholding taken out.  So we will likely end up owing this year unless I remove a deduction from my W-4 and things stay the same.  But who knows what is going to happen to “stimulate” us this year?  Do I go tinkering now and then again later?  I think I will leave it alone until we get our credit card debt gone, then revisit the issue.

Another thing I intend on doing this year is to keep better track of our charitable contributions.  I have our tithe, but other things like donations to Goodwill I never bothered to get receipts, and I now regret it, because those could have really added up last year.  With our goal to get rid of junk this year, it could be even more.  I’m going to try out It’s Deductible this year to see how easy it is to use, especially since it alleges to import directly into TurboTax.

How do you track your contributions?