Budgeting for taxes
Apr 20, 2017 11:03:18 GMT -5
Post by k3am on Apr 20, 2017 11:03:18 GMT -5
For 2015, we paid.. what I thought at the time was a lot in taxes. We buried our heads in the sand, both got raises, etc, and for 2016, we paid.. a lot more in taxes than 2015. DH has and I both got raises again this year - DH's is pretty decent, mine is basically just a COLA, but at the end of the day, I'm anticipating we'll be paying every more in 2017.
Financially, we're able to swing payment without issues, but it's just hard for me mentally to think "hey look, our annual bonuses came in" and start planning a vacation or something fun and then realize.. an entire bonus is going to pay taxes.
I suggested that we update our withholdings so that they take out extra taxes, but DH was against it. I manage all of our accounts and day to day finances. DH checks in occasionally, but he really has no clue. So I set up a new online savings account so that I could contribute to this weekly and keep it segregated. My thought was that at the end of the year, it won't "feel" like we were spending fun money. I also built the amount into our budget on a monthly basis so that any financial decisions we have won't overlook it.
I didn't really think anything about it until DH logged into mint and saw the new account and is now acting like I'm crazy. I think he's being absurd, but maybe I am? I mean, at the end of the day, we have the money. It's either sitting in one account (basic savings + money we'll need to pay taxes with lumped together) or two accounts that are both getting the same interest rate, have the same log-ins, same access, same signer names, etc.
Financially, we're able to swing payment without issues, but it's just hard for me mentally to think "hey look, our annual bonuses came in" and start planning a vacation or something fun and then realize.. an entire bonus is going to pay taxes.
I suggested that we update our withholdings so that they take out extra taxes, but DH was against it. I manage all of our accounts and day to day finances. DH checks in occasionally, but he really has no clue. So I set up a new online savings account so that I could contribute to this weekly and keep it segregated. My thought was that at the end of the year, it won't "feel" like we were spending fun money. I also built the amount into our budget on a monthly basis so that any financial decisions we have won't overlook it.
I didn't really think anything about it until DH logged into mint and saw the new account and is now acting like I'm crazy. I think he's being absurd, but maybe I am? I mean, at the end of the day, we have the money. It's either sitting in one account (basic savings + money we'll need to pay taxes with lumped together) or two accounts that are both getting the same interest rate, have the same log-ins, same access, same signer names, etc.