2006 Taxes and 2007 Donations

My taxes are all done for 2006 and are being filed electronically as I write this. I predicted owing about $3,000, and as it turns out, the situation was a little better than that.

I owe $2,693 in federal taxes (and a $65 penalty for withholding too little throughout the year). That comes to a total of $2,760 or $240 less than I thought I would owe. Furthermore, I am getting a refund of $325 from the state of Maryland, which, of course I will contribute to the payment of my federal taxes. This brings my tax bill for 2006 to a grand total of $2,435, or $565 less than what I had budgeted.

Seeing as how the money was already budgeted, the $565 that I am saving on taxes is going toward my 2007 charitable contributions. I was getting ready to send a check to the annual Isaac Asimov Memorial Debate fund at the Hayden Planetarium. I normally send $250 each year, but I was lax last year. Therefore, I am contributing the full $565 to the fund this year. As this money was not in my donations budget, it means bigger donations for those remaining places to which I donate because I have some extra money to spread among them.

Incidentally, my new tax prepared workout out just great!