I have my tax appointment tomorrow but I couldn't wait so I put our information into Turbo Tax. We were really hoping for a refund but according to Turbo Tax, we will owe about $500 for federal and $150 for state. I'm really hoping that those numbers are wrong and it will pay to have our accountant do our taxes.
I won't change our withholdings because we would be getting a refund of about a thousand bucks but we got a grant. Let me explain. We had to put in a new septic system last summer when we built our house. We worked with USDA for a grant to upgrade to a mound system. They paid about $6000 for which we received a 1099. I was pretty bummed until Y pointed out that it's way better to owe $500 than $6000. We will find out tomorrow.