Today I had my meeting with our tax preparer. The title of this post summarizes the results well. Between state and federal tax returns it appears that we owe the government a total of about $6,700. I was actually pretty shocked as this result became apparent. Our tax returns this year were very simple with only work and capital gains income, and no unanticipated items. I am still not exactly sure how this could have happened, but apparently our withholding in 2006 was substantially off.
We are taking a big hit and worse still we will need to increase our withholding for 2007, which means smaller pay-checks. Luckily both my wife and I anticipate a substantial increase in our salaries in the relatively near term. We expect these pay hikes will more than off-set the increased withholding, so not all is bleak.
Overall, not a great day in the kingdom of Shadox, but at least the stock market cooperated today and gave a nice big boost to our portfolio.