Yes, folks....there's a whopping $17 extra in my paycheck from the Yankees today. Steinbrenner must've been growling the whole time.
The thing I am not sure that I understand is this - my withholding was reduced by $17, but the tax that I owe the federal government has not changed. So, is this just setting people up to not get a refund - or worse - owe money come next tax season?
I understand that some folks view any tax refund as a bad thing (why lend money to the government interest-free...yada yada yada), but I am comfortable with the level of refund that I receive (~$400). I would prefer not to have the amount of my withholding tweaked too much, as I really don't want the unexpected excitement of having to write Uncle Sam a check for the same $400 next year. If my math is correct, the amount of the adjustment is within a few dollars of my refund. If I end up taking some capital gains in the stock market - or something like that - taxes may end up biting me in the ass come tax season.
