I’ve been doing a bit of financial spring cleaning lately (yea, I know spring is far gone). I’m quite proud of myself honestly. We are in the process of rolling $4,000 of forgotten retirement funds in to a traditional IRA for Girl Ninja. My last post was an update on how we are doing in regards to our 2012 personal finance goals. So today, I thought we’d keep the ball rolling and check in with our
friends enemies at the IRS.
If you’ve been around PDITF for a while you’ll recall last year when I did my mid-year IRS check I was shocked to find out that we were going to owe about $4,000 come tax time. 2011 was our first full year as a married couple and, while dual income is definitely sexier than David Beckham in a Calvin Klein underwear shoot, it does have one drawback….it puts us in a higher tax bracket.
At the beginning of this year, I made some adjustments to our withholdings hoping we would owe (and be owed) nothing this go around. Turns out, I must have overcompensated. Instead of owing a few thousand dollars like last year, we are actually set to get a refund check of about $1,500 come next tax season.
If you are thinking “That’s awesome!”, I have some unfortunate news for you…
You might be dumb.
Or at the very least, you don’t understand that a tax refund is really just the government giving you back your own money. Money that you loaned to them for free. Last time I checked, I’m not in the business of making interest free loans to anyone, so why the heck would I start now? You bet your lumpy bottom as soon as I saw we were scheduled to get a refund, I submitted a witholdings adjustment form to my employer. I’d way rather owe The Man $1,500, than be owed $1,500. It’s simple math.
You almost had me IRS….almost.
p.s. for those that are curios we are supposed to owe about $13,000 in federal income tax by years end…think about how many california burritos I could have gotten with that money 🙁
p.p.s. Here is the calculator the IRS provides to figure out how much you will owe.