Deleted
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Post by Deleted on Apr 16, 2019 20:07:07 GMT -5
I don't want to hijack Rukh's thread but would like a little clarification on my tax situation. We paid about $600 with our 2017 filing but owed $1,303 for our 2018 filing due to decreased withholding under the new tables. CPA said we had to file a quarterly estimated payment of $303 and increase our monthly withholding. So I made a $303 payment for the first quarter AND increased our monthly withholding by $200 effective March 31 for a total increased contribution of $2,703 over the year. If the tax plan doesn't change and we have no income/deduction change, that would make us get a refund which I don't want.
But there were comments on Rukh's thread about how the IRS figures things on an annual basis, so do I have to continue making the $303 quarterly payment all year long even though I will contribute an additional $600 increased withholding for the 2nd, 3rd and 4th quarters? If so, my projected refund will be huge which is BS in my world. And losing $903 of current income each quarter will be a huge deal for me.
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Post by The Walk of the Penguin Mich on Apr 16, 2019 21:31:51 GMT -5
If you have changed your withholding to cover the shortage for this year, you do not have to file quarterly payments.
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TheOtherMe
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Post by TheOtherMe on Apr 17, 2019 8:05:17 GMT -5
If you have changed your withholding to cover the shortage for this year, you do not have to file quarterly payments. If you think the withholding will cover it, you don't need to make estimated payments.
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Cookies Galore
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Post by Cookies Galore on Apr 17, 2019 16:29:15 GMT -5
In my pea-brained mind it would seem that since you went from $600 owed to $1300 owed that just adjusting your withholdings should cover you, but the CPA wants you to also make quarterly payments because they think you want a refund? I don't know why you need to adjust withholdings AND make quarterly payments for ~$700 difference.
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phil5185
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Post by phil5185 on Apr 17, 2019 17:51:57 GMT -5
I would have left my wh and set tax alone. And planned to pay $1300 next year. Unless you're in a rush to prepay taxes, lol. BTW, if you are $300 in arrears for 3 or 4 months, the penalty is about $3 to $6.
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countrygirl2
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Post by countrygirl2 on Apr 18, 2019 19:58:23 GMT -5
I forgot about paying a quarterly payment for the state, haven't been doing it and owing a penalty. It isn't much but don't want to. Need to pay my 1st and 2nd, late on 1st probably $200. Think I owed $400 this year, likely to next year also.
Fed, going to go over with the acct about it, she said wait till tax season was over and see where we are for next year. I don't think we will owe next year either. But we will after that.
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Post by Deleted on Apr 19, 2019 10:06:33 GMT -5
I agree with all of the above. I won't make anymore quarterly payments and obviously we'll get a refund next year. At that time I'll fight the battle over withholding with DH again. Just getting him to increased the withholding on his pension was a giant battle. The real problem is that DH refuses to have taxes withheld from his RMD so we usually owe, but not this much. The RMD goes back into investments but the tax payment comes out of current income which puts a big pinch on me because DH certainly isn't curtailing his expenditures to offset This is a sore subject between us obviously.
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phil5185
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Post by phil5185 on Apr 19, 2019 10:54:23 GMT -5
The RMD goes back into investments but the tax payment comes out of current income which puts a big pinch on me because DH certainly isn't curtailing his expenditures to offset
Remember, the withholding and/or the quarterly payments have nothing to do with your annual tax bill - they only affect when you pay the tax bill. I normally move as much of the tax bill toward April 15, I avoid prepaying. We have nothing withheld, none from our SS checks, none from my pension, none from our RMDs.
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countrygirl2
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Post by countrygirl2 on Apr 19, 2019 16:59:40 GMT -5
Yes, but she is saying they are paying money out of their current income and not out of the proceeds. I sure understand that, it will crimp the amount of money you live on.
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