For the first time in five years, we owe the government money. I'm not pleased. you've got kids and a house. if you owe money, you're not doing something right Seriously...how can you owe in that situation. And, I assume you and your wife have the same positions as before so what changed? My wife's hospital sold to another group. The hospital was formerly community owned and they allowed vacation to accrue from year to year if one did not take it. When it sold, the employees were allowed to take a payout of unused vacation hours because the new company would not allow vacation hours to carry over if they were unused from year to year. As a result, we got a very large check before the take-over became final. I don't think we had enough money taken out of that. Oh...I see. That would makes sense then. I tell people who owe that you have to pay the taxes at some point...whether it's through your paychecks or at tax time. You're still paying the same...it just sometimes sucks if you're not expecting to pay in a large amount. You should have had another baby last year! That would have off-set the extra tax dollars I bet! :D