Tax Law Changes For 2006

2006 is done.  Time to start thinking about taxes.  Below are some of the notable tax law changes for 2006.

Charitable Contributions
Earned Income Credit
Exemption Amounts
Standard Deduction
Standard Mileage Rates

All Tax Law Changes for Individuals in 2006 and 2007

Blackberry 8700c

As many of you know, I am not much of a gadget guy, but Santa ( i.e. Dayna ) was very good to me this year since I've been a good boy.  Due to my work situation ( i.e. 24x7 System Support ), I require very timely communication via email and instant messenger.  Dayna dropped a couple bills on the Blackberry 8700c for me.  It is exceedingly cool !!!  Click on the image below for a demo.

Baby Karas #2

We had our first sonogram of Baby Karas #2 this past Friday.  The baby is 7 weeks and 6 days old.  As you can see from the pictures, she/he already has little buds for arms and legs.  At this point, Dayna's due date is July 30, 2007.

Check out the latest images...

Picture #1
Picture #2
Picture #3

Christmas was also eventful this year.  Morgan did just great on Santa's lap for the very first time.  Santa was a very large man and I'm not 100% certain, but I'm pretty sure he was slightly sedated.  I imagine that is probably a requirement in order to handle such a job.  Look at his eyes and I think you'll agree.

Morgan and Santa

Morgan is 8 months old.

Morgan turned 8 months old on the 18th of this month.  I've updated the Growth Tracker with her latest vital statistics.  This past Friday we had the opportunity to see Morgan's little sister or brother in Dayna's belly.  Dr. Blackstock performed the first sonogram of Dayna's second pregnancy.  As of Friday December 22, 2006, the baby is 7 weeks and 6 days old.  Dayna's due date is currently July 30, 2007.

I was telling Dayna that I need to revamp the Morgan page to ensure we include her little sibling's information as well.  I want to give the new little one the same level of blog attentiveness as we've given Morgan.  So, look for changes on the website that will include a new section for the baby.  I'll be posting sonogram pictures very soon.

Scott's College Bowl Pickem Formula

The College Bowl season is upon us once again.  Like all the previous years, my work buddies and I participate in the ESPN Pickem game.  This year I've tweaked my formula a bit for picking my winners.

Scott's College Bowl Pickem Formula

My picks are in green.  Essentially, I pit each team's offensive ranking against the opposing team's defensive ranking.

Rushing Offense Rank vs. Rushing Defense Rank
Passing Offense Rank vs. Passing Defense Rank
Scoring Offense Rank vs. Scoring Defense Rank
Total Offense Rank vs. Total Defense Rank
Turnover Margin Rank vs. Turnover Margin Rank

I come up with a composite score and use the margin to determine my confidence levels.

For those games where the margins are slim and/or one of the teams comes from a weaker conference, I have an alternate pick for those games in the event I'm not completely comfortable with the formula numbers.

Child Tax Credit

Children are not only a wonderful gift, but, fortunately, our government provides us with some nice tax benefits for having children as well.  The additional $3,300 of personal exemption money, along with the $1,000 child tax credit can really make a difference in how much you pay in taxes.  For 2006, Dayna and I will end up saving about $1,500 in taxes just because of Morgan.  In 2007, with the new baby coming along, that number will almost double.  The $1,500 we will save in taxes this year pretty much covers our out-of-pocket expenses we incurred for Morgan's birth.  We'll be fortunate enough this year to receive a tax refund of approximately $2,600 in spite of the fact that we've had the minimum amount of withholding held from my paycheck.

Since we are nearing the end of the year, here are the 2006 Federal Tax Rate Schedules.

The Personal Savings Rate

I originally intended for this web log to be predominantly focused on personal finance ( hence, the "\money" part of the URL ), but over time this site has evolved into more of a family experience blog.

However, today I would like to talk about a finance issue that has been on my mind.

The Personal Savings Rate has been in the news quite frequently lately due to its historic low.  The PSR is actually negative at the moment.  We are spending more than 100% of our monthly after-tax income.  Some economists have attributed this to the fact that many people have been relying on their increasing home value as a means of claiming that their net worth is climbing in spite of not actually putting aside a portion of their income into savings.  Now, however, home values are flattening out and consumers can't necessarily feel good about their financial position if home values continue to decrease.

I am, by nature, an economically conservative person.  As a result, I'm not frequently enticed to purchase the latest and greatest gadget.  Fortunately, saving money comes very easy to me.  I take great joy in seeing my money grow in investments.  Watching money grow is MY hobby.  There are very few things ( other than watching my child grow ) that gives me more joy than to set aside money for investment purposes.  Why? You ask.  Well, for me personally, I don't have a need some day to cash in my pennies and throw a big party.  My desire is for my children to grow up with a healthy view of money and to some day be the beneficiary of my assets such that their lives are not filled with uncertainty about money.  For me, other than instilling a loving and caring character within my children, would be one of the most wonderful legacies I could leave to my family.

First Winter Blast

First winter blast of the year here in Tulsa...