At the beginning of February, I had a bunch of tax stuff on my mind. Here’s an update to all that madness.
1. I went ahead and ran all the numbers for my taxes – and I still was slated to receive a $4,000+ tax refund. This is attributable to two things: I underestimated the amount of withholding taken from my bonuses, and I vastly overestimated the income we would receive from this blog. Whoops. The good news is that I filed in the middle of February and received my rebate a week and a half after that. Woo!
2. Her ran the numbers for her taxes – and she’s going to owe. Everything is already in place, all she has to do is hit “submit”…on April 14.
3. For this year, at least, we won’t need a tax guy. Luckily for us, Tax Act had some cool worksheets that helped us estimate what our tax burden will be for 2008, answering many of the questions that I had. They take into account the blog income, our change of marriage status, and projected income for 2008 to help us figure out if we need to make estimated payments, what our withholding should be, etc. Serendipitously enough, it seems that my $4,000+ overpayment this year will just about cover what we need to cover for next year; thus, it seems like we can just keep on keepin’ on. (Not surprisingly, the IRS w-2 calculator is still broken.)
4. Bad news: our incomes will exceed that amount for us to take any student loan interest deductions in 2008.
5. Good news: our incomes will exceed that amount for us to take any student loan interest deductions in 2008.
6. Tax planning sucks, but sucks less when you have a good beer.
How are your taxes going so far?