If you talked to me about taxes in the last month, I probably claimed I was getting a refund. I was wrong. Booooo! We owe about $1200 and a $26 underpayment penalty (!). How did this happen to me!?! !
When we were married, I changed my withholding from Single to Married, 0 exemptions, $50 additional dollars every 2 weeks. T is withholding at Single, 0 exemptions, and paid (too little) estimated taxes on his consulting income. We both paid too little federal taxes at about the same percent. Oooops.
Luckily, I paid way too much in state taxes, and I think I balanced out my federal deficit (but not T’s). We are getting a refund from California, but it is less than the amount of federal taxes we owe.
T isn’t planning on doing any consulting this year, so this shouldn’t happen again. Consulting can really get you, because you have to pay your “employer’s half” of payroll taxes. I think he earned more money than he had thought (a paycheck from last year was applied to 2010 fiscal year), and he also didn’t take into account that marrying me would increase his taxes. I adjusted my federal withholding, and T will do the same.
I’m getting a bonus this month, and I guess some of it will be going to taxes. We are in the process of reorganizing (combining) all our cash savings, so I guess this is just $1200 less we’ll have in one of our savings funds.
Did anyone one else have a bad tax surprise? Or am I the only one?! Pleeeeease don’t tell me about your good tax surprises, I might die of jealousy! Just kidding. Sort of. 🙂