Posted: 2/2/2010 3:29:27 PM EDT
I know that this is a gun related forum, We just figured our taxes and are going to have to pay in.Our saleries have not changed this year. Do any of you remember that stimulus that obummer gave us, now he is taking it back. I changed my w-4 today for some additional witholding.
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I had to pay in about $1300 last year and 5k the year before. I'm getting $1000 back this year....I was pleased. My income increased but I didn't cash in any stocks this year as I did the previous years, I belive thats why I'm actually getting back.
I've heard reports of many people not getting back what they have before or having to pay in. 
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I had to pay in about $1300 last year and 5k the year before. I'm getting $1000 back this year....I was pleased. My income increased but I didn't cash in any stocks this year as I did the previous years, I belive thats why I'm actually getting back. I've heard reports of many people not getting back what they have before or having to pay in. My income increased about 3% from 2008 and my withholdings are almost $600 less than last year....just checked. My wife's income increased about 40%, her withholdings were $1100 more than last year...she went from single 2 in 2008 to single 0 in 2009. Some reason I got it stuck in my head that our withholdings were $1000 more than last year. <sigh> mm |
Lack of income will do that for you.
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I know that this is a gun related forum, We just figured our taxes and are going to have to pay in.Our saleries have not changed this year. Do any of you remember that stimulus that obummer gave us, now he is taking it back. I changed my w-4 today for some additional witholding. Feh. I have had to pay additional like 11 out of the past 12 years... I figure it is better than having them use my money interest free all year. Instead of having them withhold additional, excercise some discipline and withhold it yourself and then just pay them when April 15th rolls around. |
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I know that this is a gun related forum, We just figured our taxes and are going to have to pay in.Our saleries have not changed this year. Do any of you remember that stimulus that obummer gave us, now he is taking it back. I changed my w-4 today for some additional witholding. Feh. I have had to pay additional like 11 out of the past 12 years... I figure it is better than having them use my money interest free all year. Instead of having them withhold additional, excercise some discipline and withhold it yourself and then just pay them when April 15th rolls around. that's the same logic i've been using for a loooooong time! they've got enough of our hard-earned $$, they can wait until 4/15 to get the rest...and I mean midnight on 4/15 too! lol |
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I know that this is a gun related forum, We just figured our taxes and are going to have to pay in.Our saleries have not changed this year. Do any of you remember that stimulus that obummer gave us, now he is taking it back. I changed my w-4 today for some additional witholding. Feh. I have had to pay additional like 11 out of the past 12 years... I figure it is better than having them use my money interest free all year. Instead of having them withhold additional, excercise some discipline and withhold it yourself and then just pay them when April 15th rolls around. that's the same logic i've been using for a loooooong time! they've got enough of our hard-earned $$, they can wait until 4/15 to get the rest...and I mean midnight on 4/15 too! lol That game can cut two ways. If general if you end up owing the IRS more than a $1000 you need to be prepared to owe the IRS what is know as "Penalty for Underpayment of Estimated Tax". There is no free ride to purposely underpaying your taxes throughout the year and cough up a big check in April. Sure, there is no need to obviously "overpay" but you have to be pretty close to the mark or you will own the IRS more than just your tax bill. You may already know this but wouldnt want somebody to go and change their W4 to reflect married with 4 exemptions to cut down on their withholdings thinking they will just pay up in April instead. James Austin, Texas |
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... If general if you end up owing the IRS more than a $1000 you need to be prepared to owe the IRS what is know as "Penalty for Underpayment of Estimated Tax". There is no free ride to purposely underpaying your taxes throughout the year and cough up a big check in April. We've owed quite a bit more than $1K at the end without any penalty...but you have to play by the rules, almost or close won't cut it. From the bloodsuckers website:
Generally, most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, or if they paid at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller. |
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... If general if you end up owing the IRS more than a $1000 you need to be prepared to owe the IRS what is know as "Penalty for Underpayment of Estimated Tax". There is no free ride to purposely underpaying your taxes throughout the year and cough up a big check in April. We've owed quite a bit more than $1K at the end without any penalty...but you have to play by the rules, almost or close won't cut it. From the bloodsuckers website:
Generally, most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, or if they paid at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller. You are correct, there is a bit more "complication" to the IRS calculation as to whether or not you will owe the underpayment penalty or not. Not sure what percentage of the AR15.com population owe more than $10,000 total to the government or are somehow earning a great deal (and own a great deal) more this year than the previous year in order to qualify to underpay more than $1000 for this tax season. However, shooting to be under the $1000 owed mark is good rule of thumb for the majority of the average working population. Me personally, I owe quite a bit more than 10K to the government this year so could theoretically underpay by a lot more than a grand. As always if you are trying to eke out every little tax advantage possible you should probably consult a tax professional for planning advice. James |
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I know that this is a gun related forum, We just figured our taxes and are going to have to pay in.Our saleries have not changed this year. Do any of you remember that stimulus that obummer gave us, now he is taking it back. I changed my w-4 today for some additional witholding. We noticed the reduction in withholding's and changed our deductions. We have to pay every year, welcome to the marriage penalty. If I got divorced and lived with my wife we'd pay less in taxes and have a significant number of investment options and deductions we currently are not allowed. 
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To the OP -
The Obama tax credit for " working people " which includes people on SS. Check it out, use the 2009 tax estimator on Turbo TAX ... it's free. Good luck ––––> http://turbotax.intuit.com/tax-tools/ ETA: made it hot for ya... GOVT. GUN MONEY REBATE You're welcome 
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That game can cut two ways. If general if you end up owing the IRS more than a $1000 you need to be prepared to owe the IRS what is know as "Penalty for Underpayment of Estimated Tax". There is no free ride to purposely underpaying your taxes throughout the year and cough up a big check in April. I've never heard of $1000 being some sort of hard and fast limit. I've had to pay a lot more than that several times (like nearly $6k) and never got penalized. I think its based on a percentage of your tax due. I don't think there is usually a way you can get into the penalty unless you have a bunch of income for which there is no withholding done at all. The only time I did get penalized for underpayment of estimated tax is when I worked part of a year as a 1099 contractor and didn't send them anything. Even then the penalty was less than I would have paid on interest on some credit card debt that I used that money to pay off early. It isn't a simple thing, you've got to do the math (or in my case, have an accountant who can do it for you) in order to decide what route is best. |
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That game can cut two ways. If general if you end up owing the IRS more than a $1000 you need to be prepared to owe the IRS what is know as "Penalty for Underpayment of Estimated Tax". There is no free ride to purposely underpaying your taxes throughout the year and cough up a big check in April. I've never heard of $1000 being some sort of hard and fast limit. I've had to pay a lot more than that several times (like nearly $6k) and never got penalized. I think its based on a percentage of your tax due. I don't think there is usually a way you can get into the penalty unless you have a bunch of income for which there is no withholding done at all. The only time I did get penalized for underpayment of estimated tax is when I worked part of a year as a 1099 contractor and didn't send them anything. Even then the penalty was less than I would have paid on interest on some credit card debt that I used that money to pay off early. It isn't a simple thing, you've got to do the math (or in my case, have an accountant who can do it for you) in order to decide what route is best. As mentioned above it is not a hard and fast limit but a general rule of thumb for the average population if you don't have a tax planner working on your taxes and you are not doing the math throughout the year. There are three things that determine if you will own an underpayment penalty. 1. You owe less than $1000. You are good. 2. You prepaid as much as you owed the previous tax year. So for example if your tax liability in 2008 was 10,000 and you had 10,000 withheld/prepaid so far this year regardless if you end up oweing 15000 this year you are OK. However, next year you will need to withhold $15,000 in order to be in the clear using this exemption. 3. Prepay at least 90% of your owed taxes. This means that you need to generallly owe more than $10,000 in taxes the $1000 limit starts to rise. So if you owe $20,000 in taxes you can underpay by $2,000 without penalty. http://www.irs.gov/taxtopics/tc306.html If you are self employed and just deceide not to pay any quarterly installment or alter your W4 so a minimal amount is withheld so that you can earn "interest" on the money between when you earned it and when you pay it to the IRS in April, the IRS will start running interest on you to the tune of about 7% if memory serves correctly. So if you can beat 7% interest on a short-term investment, you are good with the swing difference. However just stuffing the money into a saving account and earning 3 to 5% I am pretty sure will net you a overall loss via that strategy, especially since you will own "Tax" on any interest that you made. I am not a CPA nor understand the complexity of "how" the IRS gets the underpayment amount from you but it may be that it is your responsibility to "pay" and you only get caught and fined if you are audited and they conclude you underpayed and didnt report yourself and pay the interest. |
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One additional point in the above IRS Tax Topic to keep in mind (when talking about IRS withholding or estimated tax payments), is when you earn income unevenly during the year. Example, Santa Clauses may have no income from January through October, and then a sizable income in November and December. I believe Form 2210 has a worksheet that takes that into consideration when calculating the penalty. If you are on commission sales and find yourself in a penalty situation, I'd check this out. The Tax Topic says,
******** Generally, the payments should be made in four equal amounts to avoid a penalty. However, if you made unequal payments because your income was received unevenly during the year, you may be able to avoid or lower the penalty by annualizing your income. Use Form 2210 (PDF), Underpayment of Estimated Tax by Individuals, Estates, and Trusts, to see if you owe a penalty for underpaying your estimated tax. The penalty may be waived if: The failure to make estimated payments was caused by a casualty, disaster, or other unusual circumstance and it would be inequitable to impose the penalty, or You retired (after reaching age 62) or became disabled during the tax year for which estimated payments were required to be made or in the preceding tax year, and the underpayment was due to reasonable cause and not willful neglect. ******** |