Saturday, April 11, 2009

Hit Me Baby One More Time

Ah, tax season. Yes, I've waited until the last minute. I did my federal returns (not filed, just calculated) on Thursday and it was ugly. Beyond ugly, really. LAST year was ugly; this year it's grotesque.

After paying through the nose last year, we asked to have more taken out but it doesn't appear to have happened. Clearly I wasn't paying close attention. Being hourly make it difficult to know when things are right or wrong. Boy, were they wrong.

But after I thought about it, I realized that Dwight and I had decreased our 401(k) contribution approximately two years ago, for various reasons, and have gotten socked as a result. So rather than up our withholding, we've decided to go back to the higher contribution level and pay ourselves instead. With the market in the toilet, it's probably a "good" time anyway — buy low, sell high, and all of that.

It might not bring us up to the break even point I'd like to see at tax time, but it should go a long way toward preventing a three-peat tax blood bath.

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