So do you owe, or do you get a refund this year?
#23
I adjust them as necessary, based on my expectations (early in the year) and actual circumstances (september/october) to ensure that I get or owe as close to zero as possible.
Giving interest-free loans to uncle sam is for suckers.
#27
Moderator
iTrader: (12)
Join Date: Nov 2008
Location: Tampa, Florida
Posts: 20,652
Total Cats: 3,011
Withholding sucks. People don't really feel how bad the feds are giving it to them.
If you had to write a check for it all at the end of the year, you wouldn't stand for it.
Withholding was supposed to be temporary. It was started during WWII.
Income tax was supposed to be temporary. It was started during WWI.
In 1950 it was 3%.
P.S. We threw England out and had a revolution over a 3% tax.
If you had to write a check for it all at the end of the year, you wouldn't stand for it.
Withholding was supposed to be temporary. It was started during WWII.
Income tax was supposed to be temporary. It was started during WWI.
In 1950 it was 3%.
P.S. We threw England out and had a revolution over a 3% tax.
#28
I wouldn't automatically add the penalty. Just pay the tax when you file. If you received a refund the previous year, they oftentimes will let it go because it just doesn't throw up a red flag. Make them come back to ask for the penalty. If that is the case, they send you a bill and you just pay it. If you paid in last year and owe more than $700 this year, they may ask for the penalty.
This was the advice for me from my preparer who used to be an IRA auditor. One year I owed more than the "limit" and technically owed the penalty. I just paid the tax and they never came back to me.
#30
Boost Pope
iTrader: (8)
Join Date: Sep 2005
Location: Chicago. (The less-murder part.)
Posts: 33,027
Total Cats: 6,593
In the past, I've always owed at least $5k and been exempted from past stimulus packages. Even though I have to pay underpayment penalties, it's still a profitable interest-free loan. This year, I took some significant losses in Q4, so I'll probably be getting a refund. Suck.
#37
I agree with sixshooter. If everyone had to write a check at the end of the year they would be livid about the government waste. It's way more tangible whenever the government rips the money out of my hands. Oh well, at least some of it's going for a good cause... wouldn't want poorly manged banks and auto makers to suffer.
BTW I have to pay out every year and this year it will be close to $6,000
BTW I have to pay out every year and this year it will be close to $6,000
#40
Did my fed taxes yesterday ($600 back). Tried to do my state taxes but shitty South Carolina doesn't even have the forms online yet (still have 2007 tax year posted). How hard is it to change the date on the top of the form? Anyway, using the tax tables from last year it looks like I am getting $1000 back from SC. So, $1600 back this year. Same as last year. I thought I had changed my withholding but I guess I didn't :(
For those of you who WANT to get money back at the end of the year, you really ought to think about the financial repercussions of that. Using the federal govt as a Zero interest bank is not the best you can do. I don't really want to have to write a big check at the end of the year (although financially it makes sense but emotionally it would screw with my head) but breaking even would be fine with me.
(Did I actually just type that paying $20,000 in taxes is breaking even???)
For those of you who WANT to get money back at the end of the year, you really ought to think about the financial repercussions of that. Using the federal govt as a Zero interest bank is not the best you can do. I don't really want to have to write a big check at the end of the year (although financially it makes sense but emotionally it would screw with my head) but breaking even would be fine with me.
(Did I actually just type that paying $20,000 in taxes is breaking even???)