Taxes

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Freq Band

Well-known member
GDIY Supporter
Joined
Jan 5, 2006
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608
Location
Electra City
For the first time ever, I owe federal tax.
I don't itemize. (form 1040)
I claim only 1 (myself, single), having the maximum tax withheld each paycheck.
@ $ 48k gross income.

I don't understand how not enough tax was withheld over this last year to cover my tax ?
I always got a refund previous years.

F-K !!!





=FB=
 
You should always owe a little- it merely means that your employer took just enough but not too much.
The refund is your dough, and your employer took too much and gave it to the gov, who returns it without interest.

If you like the idea of a "refund" every year, set-up something where $20 a week is taken from your bank account and put into a different interest bearing account, preferably with a $250 minimum withdrawal to prevent attrition. You will never miss it, and you will build your own "refund"- from yourself, not the government.
Mike
PS: and don't forget that silly $600 stimulus rebate coming your way! Free money, right?
 
...The refund is your dough, and your employer took too much and gave it to the gov, who returns it without interest.....

If I owe them, they'll charge me for a payment plan, plus they want intere$t.

If they owe me money, I don't get to charge interest.

This year I should set up a losing business for a couple of years, then itemize all my losses.

=FB=
 
if you owe them money, theoretically you earned more interest on it than you will pay them in the first place, IF you even owe so much that you owe interest. If you give in to the comfort factor of them owing you, then you are picking the short end of the deal every time.
 
> I owe federal tax.

Re-check your work.

You are SUPPOSED to get a refund. It makes you happy, it stirs the economy, and it means Unka Sam got to play with YOUR money all year and he kept the interest.

They write the tax-tables and deductions so this will "usually" happen for non-complex returns.

They even work it out so that Social Security people usually pay zero. (Old folks vote.) The last few years that idea has failed here. My gal collects SS, I'm still on salary. There is a form to work out how much of her SS is taxable, but my "high income" (ha-ha-ha! a buck more than you) makes most of her SS taxed at "my" rate. Every buck of raise I get boomerangs against her SS tax liability. This year, we even hit a $17 Late Penalty. And that includes steep itemized deductions (we really can't afford the loan and local tax on this house, but they do deduct well).

But one person, standard W-4 withholding, standard 1040 deduction, "should" come out near-even, usually cash back.

> you are picking the short end of the deal every time.

OTOH, the IRS is picking the long end of the stick.

Say what you like about the IRS, they do know how to take a little too much and make you like it. Those tables usually do the Right Thing. If you have a simple return, and owe money, it is more likely to be your goof than the IRS's.
 
Agree with PRR---I'm surprised that you don't have a modest refund coming.

I just sent out a check for the amount due over what I had paid in estimateds, about 7 grand. That stings. Tomorrow another 3k goes out for the first estimated for 2008. Ouch again.

But it's all for a good cause, right?

OOOWWWW
 
Well I got married this year, but my wife and I both work for ourselves. She is more on the ball than me and already filed her taxes, but she did it "married filing separately". Ouch, because now I can't claim my interest paid on student loans and a few other things. I came out alright though, because I got to claim the deduction on the school bus that I got for the band this year. :cool: I got a pretty big 1099 from a big church gig we did, so I declared all the gigs, but then got to declare the diesel costs too. :cool:

I'm supposed to get $85 back. We'll see...
 

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