Re: your mail (fwd)

[http://dummy.us.eu.org/robert (Robert)]

 > From: Noelle <http://dummy.us.eu.org/noelleg>
 > Date: Sat, 21 Apr 2007 07:48:47 -0700 (PDT)
 >
 > tax advice
 > 
 > ---------- Forwarded message ----------
 > Date: Wed, 18 Apr 2007 09:11:31 -0700 (PDT)
 > From: Tamara
 > To: http://dummy.us.eu.org/noelleg
 > Subject: Re: your mail
 > 
 > I meant to answer more but Matt's computer was acting up and wouldn't send a 
 > longer message. You should tell Robert he should have let you keep your tax 
 > advisor!! It is too late now because the IRS deadline for maxing out 401ks etc. 
 > has passed and maybe combined you make too much money anyway for that to help 
 > you. The only thing I can suggest is to check a couple of times a year, using 
 > last year's return as an estimate, and make sure your withholding is 
 > sufficient.

I thought that 1 exemption was sufficient.

 > That way you can either adjust your withholding

We changed each of our exemptions to 0.

 > or send in some 
 > estimated tax payments.

Despite having 0 exemptions, we'll need to pay estimated tax in addition,
it looks like.  I already paid $1500 to the feds; the rest of the year
should be OK with the existing withholding.

 > Better than a huge, unexpected bill. I usually estimate 
 > around mid-year and again towards the end but with enough time that I don't get 
 > any surprises.

We could afford the tax bill since I'm like a squirrel.

 > Remember you can still do some things (if you qualify) like max 
 > out 401k contributions.

I certainly max out mine; you should probably do that, too.

 > One year I transferred several hundred dollars from my 
 > savings into my IRA, which saved me almost as much in taxes.

I always max out IRA contributions, too, but it never reaches the standard
deduction, so it doesn't buy me anything.

 > But I made very 
 > little that year so I qualified for saver's credits...
 > 
 > Noelle <http://dummy.us.eu.org/noelleg> wrote:
 > Speaking of taxes, Robert is mad because we owe the IRS alot because we don't
 > own a home or have kids and make too much. We thought we were withholding
 > enough, but no.(we owe $4000)well, it's not like we don't have the money.