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2008 - Taxes or lack thereof

December 31st, 2007 at 02:27 am

Doing a quick look ahead to the coming year I am confronted with another familiar situation.

This past year was one that was slightly different from those I am used to. It was the first year I didn't get every cent in federal income taxes back. But that could easily be explained by the fact my wife actually worked most of the year and I had a couple nice raises to boost my income.

This coming year however, we are getting used to our newly born son. As such, the wife doesn't plan on going back to work and I am looking to be deployed for half the year. That will take my adjusted income to under $15K and with the various credits like the Retirement Savings Contribution Credit (which is freakin' awesome if you haven't heard of it) I will most likely get every cent back once again. So Uncle Sam will only be getting my continued military service and not my income (except for Social Security etc).

Back to planning for the upcoming year. Normally when planning my taxes for the year I adjust my withholdings to account for what I plan on owing. There is no reason to give the gov't an interest free loan. But to be completely safe this year I will withhold as if I am not going to get 6 months of tax free income. Better safe then sorry...

1 Responses to “2008 - Taxes or lack thereof”

  1. Amber Says:
    1199077117

    Congrats on the new baby and thanks for serving. I was going to note why not adjust your withholdings but you are already on the ball. I was a time when I wanted more withheld because I like the idea of big tax return, never again will I be so naïve

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