Taxes-dont be afraid!!!

[Marie66]

I know it sucks to pay out when you aren't ready for it.
But getting a tax refund isn't really a refund. It's your money, that they gov't got to hold all year and earn interest on.
I prefer to pay, that way I keep my money all year and earn the interest.
But, when you aren't ready to pay out, that does suck.
all i can say is, either get a really great CPA to look for loopholes, or go for the payment plan.

 

[saddina]

Quote:
/blush

Why thank you, but it'll only work if she's kept everything reciept wise from last year. Either way keep it all from this point on out, and it'll help on next year's taxes.

 

[gypsy2621]

This happened to us 2 years ago, though we have a claimable dependant, hubby had put the wrong number of dependants so enough was not taken out weekly.
we went through the monthly payments, right up untill I figured out we were paying 2 times on what should have been once.
the interst is monthly driving up your amount.
$1000.00 with monthly interest will end up costing you nearly $1800.00 ( too early for math so excuse if not correct amount).
I think the monthly interst adds up to close to 30.00$ per month.(I also want to think it is based on how much is owed) Ugh too early to think,.

While getting hit with owing money in for getting your own money back then add intrest on top of that it makes for a devistating blow when you have other bills to pay, be thankfull they caught it now, when they caught our mistake they waited to send the bill out in December, 4 days before Christmas.
Is there someone you could borrow the amount from and pay them back at a lesser intrest rate? that way you can get the IRS their money and not have to pay the added interest?

 

[Reinbeau]

Quote:
Actually, if you claim 0, you get more taken out in taxes, which is what Debi should be claiming - you can also have additional Federal taxes taken out, just ask your payroll department. You'll have to file a new W4, they have to honor it.

 

[wingnut1]

Debi - Sorry to hear about this -- open communication with the IRS is the best bet - let them know that you don't have the funds and keep asking about the options available to you.

If you have any business expenses, medical expenses beyond a certain percentage of your income, charitable contributions, other deductions that you failed to apply on your 2008 return, you can amend your tax return (as others have said, you'll need the receipts).

I know you just moved and this may not be of interest or applicable to you - but the 8k tax credit for first time home buyers can be applied to the 2008 tax year - you can amend your filed returns. See the last 3 paragraphs of this link - http://www.msnbc.msn.com/id/30214856/

There are grant programs that provide assistance with down payments for FHA mortgages - http://www.fha.com/fha_programs.cfm.

If all else fails, I wonder if there are some tax accountants who REALLY like fresh, organic eggs and might be willing to do a trade - eggs for advice/a review of your 2008 return...

this isn't their busy season... might be worth a shot!!!!

Best of luck!

 

[debilorrah]

Quote:
Actually, if you claim 0, you get more taken out in taxes, which is what Debi should be claiming - you can also have additional Federal taxes taken out, just ask your payroll department. You'll have to file a new W4, they have to honor it.

I knew she has it bass ackwards

Anyhow, there is nothing I can do for last year..... I will start keeping all my receipts and stuff for the birds. It sucks because I know I am not having enough taken out NOW, but we can barely squeak by already! If I have more taken out we are screwed.

 

[NancyDz]

There is a spot on your W4 for putting an additional amount you want taken out.. you can put whatever amount you want in there. I only have $20 a paycheck additional taken out... that adds up to $480 bucks a year extra going to them... Believe me it helps and you won't notice it. If you can do a little more... even better. But call them, they will work with you. Feds were great to work with.. the State of CA on the other hand was horrible.


Good luck!

Nancy

 

[CityGirlintheCountry]

I thought I'd get smart this year and do my own taxes. In addition to my regular job I do a number of 1099 jobs. When I did my taxes I was going to owe $1800. I broke down and went to an accountant and he did his magic and got it down to owing $200ish plus another $100 for him. Totally worth it.
There are all sorts of random deductions that normal people don't know about. Things like being able to deduct your cell phone for business use and the teacher deduction. If you haven't had an accountant look over your stuff, it might pay off in the long run.

Also, the IRS has an advocacy program to help you. It gives you a person to help you understand and to help argue your side. There is no cost and it helps to talk to a real person about some of this stuff.

Good luck. The IRS is a trauma for sure.

 

[Katy]

We always owe since we are self-employed farmers and we don't have an employer withholding for us. Depending on how our crops produced and what prices we get for them the tax we owe varies widely from year to year. We just have to keep that in mind and keep enough in an account so that will be available to pay our taxes with.

 

[JennsPeeps]

Before you start claiming expenses for the birds, make sure that you won't incur further tax liability if you claim that you're running an agricultural business, either on the federal or state level (isn't CA tax-happy?). Make sure you're well-informed for that possibility.

Since you're in CA, you could follow the Governator's lead and issue an IOU, right?