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Tax Refund?
May 6, 2024 08:50:22 #
BebuLamar wrote:
I am not sure if I had to pay a penalty for underpayment or not. I filed my tax using turbo tax and pay the IRS whatever turbo tax told me to.
I've also been doing that for 15 years. Sometimes I receive a refund, sometimes I pay what I owe. I always have estimated quarterly payments for the next year. It works for me.
Mark
May 6, 2024 09:19:59 #
markngolf wrote:
I've also been doing that for 15 years. Sometimes I receive a refund, sometimes I pay what I owe. I always have estimated quarterly payments for the next year. It works for me.
Mark
Mark
I just paid what I owed (I always owed money in the past 15 years or so) but recent years I owed a lot and I don't know if I had to pay any penalty (that is turbo tax figured out the penalty and told me to pay). I owed almost $8000 for the year 2023.
May 6, 2024 09:23:56 #
apacs1
Loc: Lansdale, PA
Congratulations. That means you earned a lot more money than you thought you were going to earn. Hard to complain about that.
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May 6, 2024 09:28:22 #
I had a big tax bill one year when I took some money out of an IRA to buy a house.
I use a CPA to do my taxes for me because I have business interests as well as normal income. I just send all my records at the end of the year and he tells me how much to pay or how much I get back. I have increased withholding from a couple income streams to cover the average and it works pretty well. I don't have to spend any time trying to figure out my taxes during the year to keep current. The CPA charges a couple hundred dollars which I deduct from my income (since it's for the business) and the time I don't spend on taxes during the year is worth something so I figure I'm generally pretty close without the work involved to get down to the wire. As noted, it doesn't always work when I deviate from the normal process by taking money from a tax sheltered account for a large purchase but that has only happened once.
Even though I'm retired, I count my time as worth something so avoiding the time spent on the tax details is equivalent to income.
I use a CPA to do my taxes for me because I have business interests as well as normal income. I just send all my records at the end of the year and he tells me how much to pay or how much I get back. I have increased withholding from a couple income streams to cover the average and it works pretty well. I don't have to spend any time trying to figure out my taxes during the year to keep current. The CPA charges a couple hundred dollars which I deduct from my income (since it's for the business) and the time I don't spend on taxes during the year is worth something so I figure I'm generally pretty close without the work involved to get down to the wire. As noted, it doesn't always work when I deviate from the normal process by taking money from a tax sheltered account for a large purchase but that has only happened once.
Even though I'm retired, I count my time as worth something so avoiding the time spent on the tax details is equivalent to income.
May 6, 2024 09:29:56 #
Linda From Maine wrote:
Alas, military retirement pensions are subject to federal income tax (and some states tax it also), so I'll be filing 'til I die 
.
.
Wow Linda!!!
Thats Bull Hockey !!!
May 6, 2024 09:47:20 #
apacs1 wrote:
Congratulations. That means you earned a lot more money than you thought you were going to earn. Hard to complain about that.
I am not complaining just wonder if I had to pay any penalty. Turbo tax may figure the penalty and put it in the amount I owed. So I paid it. It's OK but I don't know there was any penalty amount in that total that I paid.
May 6, 2024 10:13:51 #
apacs1
Loc: Lansdale, PA
I would think that if you owed a penalty, it would be noted somewhere on your 1090 form.
May 6, 2024 10:16:16 #
May 6, 2024 10:18:48 #
apacs1 wrote:
I would think that if you owed a penalty, it would be noted somewhere on your 1090 form.
May 6, 2024 10:42:11 #
I just opened another savings account which I will use to put money in anticipating next years taxes. Each year you get a refund it means you’ve given the government an interest-free loan.
If you put it in a savings account, you’re denying them that loan and perhaps get a few cents in interest.
I remember the good old days when sales tax, gasoline, and other things were deductible.
If you put it in a savings account, you’re denying them that loan and perhaps get a few cents in interest.
I remember the good old days when sales tax, gasoline, and other things were deductible.
May 6, 2024 10:50:02 #
apacs1
Loc: Lansdale, PA
Sorry to hear that you have to open another savings account for a few cents interest.
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May 6, 2024 10:53:10 #
Indi wrote:
I just opened another savings account which I will use to put money in anticipating next years taxes. Each year you get a refund it means you’ve given the government an interest-free loan.
If you put it in a savings account, you’re denying them that loan and perhaps get a few cents in interest.
...
If you put it in a savings account, you’re denying them that loan and perhaps get a few cents in interest.
...
I suppose it's more of a matter of principle for some rather than economics.....
May 6, 2024 11:23:43 #
kufengler
Loc: Meridian, Idaho 83646
Canisdirus wrote:
Simple...you aren't gaining anything by doing that.
You keep your money with yourself...and grow it far past what the govt. gives you...which is zero.
Far better to owe than not.
You keep your money with yourself...and grow it far past what the govt. gives you...which is zero.
Far better to owe than not.
I've known people that don't pay anywhere near enough to balance the amount.
Then when it comes time too pay they don't have enough to pay what they owe. In the past I've gotten quite a bit back, which I put into a CD. i'm working on balancing the tax burden, since we are on a fixed income.
May 6, 2024 11:33:20 #
[quote=Linda From Maine]I understand your confusion. Some days are hard for me too.
This is the comment you made that prompted my first question:
Usually it's the young who count their refund as savings.
Not worth it.
This is the comment you made that prompted my first question:
Usually it's the young who count their refund as savings.
Not worth it.
May 6, 2024 11:39:45 #
Longshadow wrote:
Especially with interest rates the way they are.
Keep it and not use it (save it for taxes) and maybe get 50¢ in interest, or send it and not be able to use it and not get 50¢ in interest. Unless one is talking about thousands ans thousands of dollars, doesn't matter to me.
I'm not worried about the 50¢.
Especially with interest rates the way they are.
Keep it and not use it (save it for taxes) and maybe get 50¢ in interest, or send it and not be able to use it and not get 50¢ in interest. Unless one is talking about thousands ans thousands of dollars, doesn't matter to me.
I'm not worried about the 50¢.
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