Nicole has been screaming this in my deaf ears for 7 months and only tonight did I do some math.
Back in 2006 the federal tax withholding on my income was 9.6%. This usually allowed for a nice tax return at the end of the year.
Now, in 2009, even though I've changed nothing on my W-4 (which way back in 2006 was a W-2), they are only withholding 7.5%.
Using the free IRS 2009 Withholding Calculator they tell me that if I do not change my current withholding arrangement I will have $2,325 due when I file my return.
WTF? Why not just keep taking the 9.6%? Now they advise that I sock away an additional $232 per paycheck for each of us in order to save the $2,325.
How did this happen? Why did this happen? What about all the people that haven't caught on to this? Can we write the government IOUs in April?
I'm so depressed.