California increased their individual tax rates/exemptions in 2009/2010.

This affected us substantially. Our annual income taxes went from about $600 to $1600. Ouch. However, these were also the years of the "making work pay" credit, so it kind of evened out.

Anyway, I initially saw taxes were going down (state) for 2011 and decided to leave as is for future tax increases.

THEN, I remembered how the state is issuing IOUs and delaying refunds, etc., etc., etc. I decided to *screw that* and change my withholding back. I would prefer to owe at the end of the year.

This will increase my paycheck by $80 per month.

Payroll tax holiday will buy me about $130 per month.

My Federal seems dead on, as is, so I will keep that withholding the same. Means I found another $210 per month, total.

That's $2520 per year. Piano lessons is $1k per year, each child. The rest will go to savings for next year's piano lessons. The payroll tax holiday is only a one year deal. I think if I start LM later in the year, and STATE tax rates stay low another year, I can fund 2 years of lessons.

It is also looking more likely we will max out our ROTHs next year. Maxing the ROTHs (from income/consistently) and affording piano lessons have been in my long range goals for many years. I thought all this medical/surgery stuff, 2 years in a row, would set us back much further.

2011 looks promising!

(I know, I know - how long until the state increases taxes again? Maybe this June with the budget? Likely! But I will enjoy in the interim. I am also presuming I bounce back quickly from surgery! Hoping for the best...).