Your taxes will be what your taxes will be. If you and your husband have steady, predictable income (rather than having it vary wildly due to bonuses or commissions), and you haven't had huge increases in pay, then your taxes next year will be roughly what they were this year. The question you need to ask is: Are we having a monthly amount withheld that at the end of the year will total about what our taxes were last year? What you should strive for is to be just a little over or a little under. Right now you say you're having an extra $5280 in income from reducing withholding. How much was your refund last year? If it's less than this, you need to make some adjustments to get these two numbers into rough alignment. While it's ok to under-withhold and owe money, it becomes a problem if you are too aggressive, because it can trigger penalties, additional forms, and mandatory quarterly payments the following tax year if you don't have at least 90% of estimated taxes withheld, as I recall. If the math is too much for you, have your financial planner figure out how much should be withheld. You can specify this amount on the W-4, rather than simply changing the exemptions. Right now it sounds like you're guessing at some of this, and you should really try to get it right.

Hello dream garden, Around here, having had a skiff of snow over the past few days, the concept of a garden is pretty well a "dream" at present - though I think that it's past time that I should put some seeds into the earth that I stored in pots in the basement. Thank you for your message of appreciation. Yes - "stretcher" is an interesting site. Some years ago when my son and I had a display at a fall fair, mine being along the line of "Making Your Dollars Work Harder" and "How to Pay Less Income Tax", a man came up to me and asked me what right I had to call myself a financial planner. I told him that all that I have to sell someone is looking at money a little differently than they, for if I look at it (almost) identically, they won't pay to talk to me ... and if I look at it from a hugely different perspective, they'll clap their both hands over both ears and think, "Oh, Lord - no way am I even going to consider trusting management of my precious money to *this* flake!!". I said that it seemed to me that the time when I began to look at money somewhat differently than most city folks (my major potential market) was when I grew up on the farm. He replied, rather vehemently, that that had nothing to do with it! I told him that I thought that it did, for most city folk have regular income and if they miss a couple of paycheques, are crying the blues such that you think that the world was about to end, while for most farmers irregular income is an ongoing fact of life. Further, most city folk don't think much about the difference between cash flow and capital - their main capital issue being their mortgage, on which they make regular payments without thinking. They have no idea how one needs to consider, having enjoyed a little larger income than usual this year, whether to do an overhaul of the tractor motor, or trade it on a better one, and whether one can afford to get a better/bigger combine this year, or buy some more cattle, or hogs, put a new roof on the barn, make an extra payment on the mortgage, etc. I also told him that I'd taken the courses that stockbrokers take - much more complex than the training of most mutual fund sales folk. Plus six courses (passed 5) leading to title of Chartered Financial Planner - later revised, I'd have to start all over: at 70 or so (now 77), and receiving 3 pensions - I thought not. By the way, having done a preliminary calculation of my tax for this year, I find that I may be paying something under 10% of income in tax - about half of the amount of my charitable contributions (without considering the political ones, that are partially deductible, up to a limit, as well). Hope you enjoy your spring - and your garden. Mine, in the corner of a field of beans for processing (freezing, canning) got sprayed last year ... twice! ole joyful P.S. When you live among refugees for a time - it gives you a whole different outlook not only on money and its uses, but on various other dimensions of living, as well. Including being thankful for the accident of birth that had me born in this country rather than in many others - but they are God's people, too - and I owe them something o j

Bob, This is part of "The Energy Policy act of 2005". Attched is a link to the policy and it explains the credits suchas High efficiency furnaces $150, High Efficiency Central A/C units $300, High Efficiency fans for heating/cooling $50,... Split systems must have a Seasonal Energy Efficiency Rating of 15 AND and Energy Efficiency Rating of 12.5. Total credit max is $500 and the deadline is December 31, 2007. As the credits are listed separatly, I would assume you can get the $300 credit for the Condensing unit & Evaporator coil (Less furnace), but heres the catch. You have to buy an ARI certified set of coil and matching condensing unit. The sites below will help you. Also contact a local A/C installer and get a second opinion. Remember this is a "Tax Credit" so if you can google the tax credit form, it should definately explain what is and is not covered. Thanks Dan Martyn http://www.epa.gov/oust/fedlaws/publ_109-058.pdf http://www.energy.gov/taxbreaks.htm http://www.cee1.org/resid/rs-ac/res-ac_specs.pdf http://www.cee1.org/resid/rs-ac/rs-ac-tax-credits.php3 http://www.ceehvacdirectory.org/ Here is a link that might be useful: Energy Policy Act of 2005

Any Federal retiree can switch to a individual policy. The reason so many federal employees stick with the government is that health insurance will be available to them for their life. This does not mean that a federal retiree can afford the plans only that they are available. If a retiree switches to a private plan that guarantee is lost. As a fed retiree, not eligible for medicare, I have seen plans come and go. If you opt out of the federal system you can not return if your insurance company fails or decides to pull out of your state. Personally I would rather not take that chance. Many of the federal plans pay for prescriptions so you would not need a separate Part D. You have paid for B already and depending on your income this year you only pay $96.00 a month for A. If your plan does not cover scripts you might need a Part D plan. Jeremy, take a look at the health plans available both nationally and for your state. You might be surprised what they do cover. Of course by now other than dropping health insurance any decisions have already been made. Any changes in government plan would have to be delayed until the next open season in the fall.