tax timeWe now have taken a first cut at our 2017 tax situation. After paying out to the Feds last year, we adjusted our withholding to try and prevent paying the lump sum. I used a spreadsheet earlier this year to figure how much we were going to withhold and from which (we have several sources of income). Unfortunately, after putting the preliminary numbers into the tax program, it looks as if we have over withheld and will likely get a larger than we like refund (hate to lend money to the government). The preliminary refund calculation shows that we’re going to be getting back over $2k.

I suppose that after we have completed the final cut for 2017, I will re-assess the withholding and make adjustments. A couple of things may have changed in our favor, including a slightly lower annual income and we have begun supporting the tuition fund for our local Christian Academy which is not only a 501(c)(3) Federal deduction, but a dollar for dollar state income tax offset. We paid no Arizona state income tax last year nor will we this year.

Now, all that’s left to do for the tax return is to wait while the various 1099 forms trickle in and go over each item again. I may tinker with some withholding numbers for 2018 in the meantime.