Sunday, February 19, 2006

Booo taxes!

This is my first year to actually have to pay taxes instead of getting a refund. $917 of 'em. Guess I need to drop my W-4 exemption, assuming I have one. I don't remember.

I was kind of hoping that investing into two retirement accounts would have helped ensure that I got a refund again, but no. I gave more to charities last year, which might have made the difference.

Oh well. Maybe next year.


Anonymous said...

Standard deduction = $5000.

You have to give a lot to charity, have some kids, or buy a house to make itemizing worth your while.

Why would you want to decrease your W-4 exemptions? If you have to pay in some at the end of the year, in theory you've had the money all year to earn interest. If you withhold more, you're letting the government get free interest off your money. It's not much, I admit, but it's the principle of the thing.

MajorLB said...

My dad agrees with ian. Ideally, he'd like for no money to exchange, but if someone is paying then he wants it to be him. I tried to explain this logic to this older, probably white trash, definitely poor woman once. It didn't go well.

Travis said...

Oh yes, ideally, I wouldn't drop the W-4 exemption. I get the whole free interest deal, and they're not getting their money until April. But someone told me that you shouldn't have to pay extra on April 15 more than a couple years in a row or it's a red flag for an audit. I don't have any idea if that's accurate, though. I figured that, in case it was, I might just drop the exemption and not care about it. But, I dunno; I haven't decided.