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Need to change our exemptions

January 8th, 2008 at 06:15 pm

Every time DH and I calculate our exemptions for tax purposes, we get a ridiculously high number. Up until now, it's been okay as we have been getting wads of cash back at tax time (thank you, EIC!). However...we paid nearly nothing out of our paychecks for federal or state taxes last year, which happened to be the year DH started to earn money again. So, I tentatively figured out our taxes last night and it looks like we'll owe $300-400 in federal and about $100 in state. It could be a lot worse, but I think we'll have to make a change this year, as DH is going to make more money still.
We ended up missing the EIC credit by about $4k. Bummer. I was hoping we'd get a little back to finish funding our Roths for the 2007 year ($2k left to go), but it's not to be. We'll just have to tighten up for the next few months to get that money in before April. It can be done!

3 Responses to “Need to change our exemptions”

  1. mjrube94 Says:

    My most hated time of year...tax time. Ugh!

  2. ceejay74 Says:

    Is it true you could get penalized beyond what you owe if you don't withhold enough? Or can you just save some money and maybe even earn interest on it before paying taxes?

  3. boomeyers Says:

    I usually have my taxes ready to turn in by the end of January. This year, I have NO CLUE what is going to be what. I hope we end up on the winning end! Smile

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