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For 2017 I paid in 8984 and wound up owing 9920 so I had to pay in 936.
For 2018 I've paid in 9037. I'm fearful I'm going to wind up owing about 11500, which would be a shortfall of 2463.
So you guys are saying that sending the IRS a tax payment of @ 1500 by January 15th is what would be best to avoid any hassles.
You paid more than last year, in theory you should be ok. But it’s very small fee, it’s not worth stressing about.
For 2017 I paid in 8984 and wound up owing 9920 so I had to pay in 936.
For 2018 I've paid in 9037. I'm fearful I'm going to wind up owing about 11500, which would be a shortfall of 2463.
So you guys are saying that sending the IRS a tax payment of @ 1500 by January 15th is what would be best to avoid any hassles.
You should have more than last year's total liability paid in. Send a check for $900 by 1/15/19.
You may still wind up with a small penalty since it's supposed to be paid in throughout the year (the penalty is calculated as interest from the date it should have been paid in).
If you can increase your withholding with your employer for the $900 do that instead of paying it as an estimated tax payment. Withholding is considered paid throughout the year unless the taxpayer elects to have the actual timing and amounts applied.
Just to clarify I know that there's lots of people that owe more money than me. But it seems like those people are usually self employed and don't have a regular W2 job. My taxes are just straight forward and all I have is a mortgage deduction. I don't have an accountant either. I do them on software from the store.
So I just want to minimize the federal governments attention to my tax liability.
I found a link on irs.gov whereby you can make a one-time payment through your checking account. That's probably what I will do.
You should have more than last year's total liability paid in. Send a check for $900 by 1/15/19.
You may still wind up with a small penalty since it's supposed to be paid in throughout the year (the penalty is calculated as interest from the date it should have been paid in).
If you can increase your withholding with your employer for the $900 do that instead of paying it as an estimated tax payment. Withholding is considered paid throughout the year unless the taxpayer elects to have the actual timing and amounts applied.
The site you found is very easy to use and I would use.
I assume you have the cash so the interest you would earn between now and April 15 probably would not buy you a cup of coffee so pay some money now and sleep well.
I have no relevant expertise here, so I can't offer advice on what you currently (may) owe.
But I gotta ask... why cut things so close that you stress about it? Why not set up your W4 form so that you *always* get a tax return? It's one of those easy steps you can take to make you life a little less stressful... I sniff those out like a dachshund looking for crumbs.
You often hear advice repeated that if you're getting a tax return, then that's a free loan to the government. As if you're missing out on massive interest payments that you'd get if the Guvurmunt wasn't holding your money.
What interest rate does a good savings account pay these days? Maybe 2% at the most? Usually less.
Say you get a $3000 tax return (close to what I usually get). Remember that this $3000 builds over the course of a year. So at 2% interest even if you kept it in a high yield savings account (which most people won't)... you've missed out on approximately $30.
I dunno about you... but for me, peace of mind where the IRS is concerned is worth more than $30.
I wouldn't care whether the penalty was $5.00. It would be $5.00 too much. And $5.00 that could stay in the taxpayer's pockets, in stead of Uncle Sam's.
Check this year's tax laws and calculations. For one thing, the personal standard exemption has doubled. For another, the brackets have changed. I may be miscalculating, but, it appears that we will save about $4K in taxes, even though our income and spending has increased.
But I gotta ask... why cut things so close that you stress about it? Why not set up your W4 form so that you *always* get a tax return? It's one of those easy steps you can take to make you life a little less stressful... I sniff those out like a dachshund looking for crumbs.
First, a pet peeve- the document you file with the tax authorities is your tax RETURN. Money you get back because you paid too much is a tax REFUND.
I know people who prefer your tactic- one coworker used to look forward to his refund every year because he'd make a major purchase with it. For me, it's the principle of the thing: I will pay the gubmint what I owe but as late in the game as possible.
Neither that let peeve nor that 'principle' mean anything to me. But hey, cut off your nose to spite your face if that's what makes you happy
I'm just saying that the stressful situation the OP has put himself in is easy to avoid.
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