Decided to work on my taxes. I don’t get back much, and I will apply the small refund to next year’s taxes and will do the same thing for the next few years as in a couple of years, I will see a decent increase in my pension income which will see a good increase in the taxes owed. I need some more information to finish them that I don’t have in front of me right now. Will look for it when I get home later tonight. In several years, my pension becomes fully funded which will raise my taxes a bit as I get a lot less now before it gets fully funded.
Once it gets fully funded, I will increase the amount of federal taxes withheld. As it’s a federal pension, the state of Kansas does not tax it as they don’t tax federal, state, and local government pensions once you start receiving them. If I was still a county employee, I would owe taxes on the amount of money withheld for KPERS (the county uses the Kansas Retirement System) deductions. The downside is I would owe federal taxes on the KPERS income as they consider it income once I start receiving it. The upside is I didn’t owe federal taxes for the amount paid yearly into KPERS as the federal government treats it as pre-tax income.