More on my too-tight diamond shoes

Written on Monday, January 23, 2006 by Jessica

Well, wouldn't you know it? All my numbers are off! Okay, so I'll cough up the truth. I estimated our taxes based on an unemployment statement. (Bob was laid off for two weeks in December.) The unemployment statement included the year's total income from each of the three companies Bob worked for, so I plugged those numbers into our tax software. I didn't realize that at least one of the companies included Bob's pension and annuity contributions as part of his wages. In other words, they reported much high earnings than he actually had, resulting in all the whining last week. As it turns out, we didn't exceed the maximum income for deducting IRA contributions, so we'll be able to avoid the underpayment penalty altogether, and our tax burden is much lighter than previously thought. (Maybe we were even bumped down to a lower tax bracket??) Gee, I'm so glad I whined like a baby...

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