Screw taxes. I’m over them. So over them, in fact, I decided I’m not paying the IRS another penny. Yeah, that’s right, not one freaking penny. I went in to my payroll solutions system a few weeks ago and jacked my exemptions up to 18, which means I am effectively paying no more federal income tax. That’s how I roll.
“But Ninja, you work for the federal government, wont you get fired for not paying taxes?”
No. I won’t.
Okay, time for me to stop pretending like I’m a hardened criminal. I’m not paying any more federal income tax because I’ve already paid enough in taxes to cover my projected tax obligation.
That’s right, I’m off the hook with the IRS. A few times a year I use this handy-dandy IRS withholding calculator and compare what I’m paying in taxes to what I should owe in taxes. Seeing that the end of the year is less than 60 days away, I felt it was important I made sure no surprises were coming my direction.
I don’t know why, but for some reason Girl Ninja’s school only takes out like 4% of her gross pay for federal income tax. It’s really annoying because it should be more like 18%. All year I’ve been overcompensating by paying an excessive amount of federal income tax on my salary to make sure we didn’t fall short and get hit with penalties. Turns out I was paying so much extra we were predicted to get a fat refund; to the tune of $2,500.
Important question to ask oneself: Why the heck would I wait until February-ish to get that money back, when I can change my deductions and start getting paid back now?
With the click of a few buttons, I claimed 18 exemptions (as suggested by the IRS calculator) and eliminated all of my federal income tax payments. That’s $900/month extra going to my bank account. Couldn’t have come at a more opportune time with Xmas right around the corner.
I personally have an issue giving the government more than required. I know they would never give me an interest free $3,000 loan, so I’m not about to give them one. Think about it like this, would any of you give me $250/month for the next 12 months if I gave it all back to you a year from now? Heck no you wouldn’t, so why do you do that for Uncle Sam?
Have you predicted your estimated tax obligation this year? Are you expecting to owe or be owed? How much?
random fun fact: WA state does not have state income tax 😉