Can you believe we’re already half way through 2008? I can’t.
I’m looking at our income for 2008 so far to anticipate what our tax obligation will be for the year. Shane’s income is steady, but my income is sporadic. Oh, it’s going to be fun figuring our taxes on those things. Tons of fun.
We won’t be able to completely nail down an estimate on our taxes, because my baby’s due date is December 30. If he or she is born in 2008, we’ll be able to claim Baby on our taxes for the year. That would mean a nice refund of $1,700 or so! But, if we don’t get to claim Baby for the 2008 tax year, we’ll just get to keep claiming him or her until 2026, instead of 2025. It’ll work out somehow.
It’s entirely possible that my baby will wait until 2009 to make an appearance. We can all make guesses later.
Even with all of these unknown factors, it’s still worth making sure we’re not withholding too much taxes from Shane’s paycheck.
I ran the numbers on the IRS Withholding Calculator, and if my estimates hold true, we will get a federal refund of about $200. I’d like a small refund like this. A large one would mean we’re sending too much to the government right now.
Crunch some numbers and see what happens. If you’re looking at a substantial refund, consider adjusting your withholding so you get more money in your take-home pay. And if you find out you’ll be owing a nice chunka change next year, it might be worth adjusting that or setting aside some money to cover your tax liability.