I did a rough draft of our tax return last night. We are getting back around $1,900. Then I did it without my W-2. We would be getting back $3,800!!!! Twice as much! I showed DH and he was shocked -- so was I. Someone on this board suggested I do that to see how it will be when I'm a SAHM next year. Thanks whoever you are LOL

Now DH thinks if he keeps his withholding the same next year that we will have a big enough refund to pay our house/car insurances and real estate taxes and not have to dip into savings for them. I'm soooo happy! :happy dance:

Just wanted to share my shock and happiness (although I should be bummed that the federal government is getting that money!!)

What an eye-opener! I'm sure that helps set the decision to stay home!

We are having our taxes done today and that is a question I am going to ask our accountant. I am also planning on being a SAHM in about a year, so I was wondering the same thing. Thanks for the reminder!!

One thing to think about taxes is that if you are getting a refund (and a big one) that you may want to change your with-holdings. The reason you are giving the government your money to use. However, if you count on the money to pay certain bills and you know that having the money every pay period you would spend it on something else then it wouldn't work.

Just another thought about planning to SAHM ...... if your income plus DH income would bump you up to the next tax bracket. Then you would pay more in taxes

My father told us this and I didn't believe him at first but it is true. When my husband got moved up to driller and his income went up we figured it was worth more to us in the long run to just stay home. Amazing huh???

I posted about mine too. Last year, when I didnt work we got back a TON. This year, the amount was cut in half, and I only made around 12,000 working 2-3 days a week. We aren't stressing about all this time I am taking off before and after baby, now.

Wow! That is quite a difference. The government sure has a way of getting their $ don't they.

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Proud mommy to adorable Kinsley

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I'm going to ask that you go a little more in-depth with this. How much you're getting BACK as a refund doesn't necessarily indicate how much you're PAYING in income taxes. For that answer you need to look at a different line on the income tax form. On the 1040, that line is #63 where it says, "This is your total tax". Compare that line to the form where you use both of your incomes and the form where you use just your husband's income. The difference between those two numbers is how much it is costing you to work (especially when added to the cost of daycare and other expenses).

For instance ...

Let's say your combined income is $36,000. Your husband makes $20,800 (roughly $10/hr) and you make $15,200 (roughly $7/hr). With deductions and credits, you might owe $3,104 in taxes.

Then calculate just on your husband's income. With deductions and credits, you might owe $1,053.

The difference between $3,104 and $1,053 is $2,051. Remember, when recalculating based on your husband's income alone, you won't be able to take the childcare credit but you might qualify for the EIC.

So, let's say your income is $15,200 and you are paying an extra $2,051 in taxes to work. In addition, daycare is costing you $100 a week or $5,200 a year. Subtract those expenses from your gross income and you are now earning approx $7,950 a year or about $3.80 per hour. And remember, I'm not calculating social security or Medicare taxes that you're paying which is about 7% right off the gross - and something you may never see get returned. In your case, that might be another approx $1065 off your gross. You are actually making about $6885 per year or $3.30 per hour.

Now let's not sneeze at the extra $6K to $7K per year. Some families really do NEED that income, as piddly as it is. However, if you daycare costs should suddenly increase (ie: you have another child) or your tax calculations prove that you're actually LOSING money by working, quitting is something to seriously consider.

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"Poor people work for their money. Rich people make their money work for them."

Don't forget! It will be interesting to see if yours is like that too.

It is amazing. I didn't think it would be that big of a difference but it sure was. Added to all the other stuff I think I will save I am becoming more confident that we'll be just fine when I quit.