Is anyone a tax accountant?

[DianeV]

Please help..

My husband evidently didnt have enough federal taxes taken out of his pension check and we ended up owing $1310 to the IRS. We used turbo tax which looks lke it figured out the $21 penalty but it also printed out vouchers to make estimated payments. We plan on having more taxes taken out so we dont owe next year but are we 'required' to do the estimated voucher payments? I sure hope not because we do not plan on it happening again

thanks for help!

 

[MickeyMickey]

No, you are required to pay in somehow that amount to be penalty proof either through WH or tax estimates. If you have witheld what you did this year plus the estimated payments that turbo tax set up you will be penalty proof.

 

[chalee94]

are we 'required' to do the estimated voucher payments?

this should be a helpful link to the irs.gov

(the rules are the same for 2011 and 2012.)

 

[DianeV]

so it looks like if we make sure to have enough additional withheld from his check we will be ok and dont have to worry about the vouchers?

 

[Claire&TheBoys]

so it looks like if we make sure to have enough additional withheld from his check we will be ok and dont have to worry about the vouchers?

That's correct.

We have clients who *should* make estimated payments - we give them the vouchers and even envelopes, but they don't do it. They just get penalized on their tax return, but apparently don't care.

 

[Cheshire Figment]

I will normally work very closely with my clients so that either what they owe or the amount of their refund will be within $500 of even.

If they will be owing more I will discuss with them either filing Estimated or do a work-up to determine what changes they need for their withholding for the remainder of the year.

Even if TT generate the Estimated Vouchers, there is no need to file them if you adjust withholding. But either method is better than having to pay the penalty for underpayment of estimated.

And, for the OP - did you let the TT program know what was your taxable income (1040 line 61) from last year? The penalty can be fully or partially waived depending on the prior year tax.

Mike (CPA Retired)

 

[DianeV]

I'm not sure if TT asked or not..I didnt know it was giving us a penalty and vouchers until I was done. I think the penalty was $21 though. I'm not as much worried about that as the vouchers and next year. My husband claimed 5 on his pension he believes and we are a family of 4. We are changing it to 3to see how much more it will take out. Worse case, we will specify a specifc amount I guess

I will normally work very closely with my clients so that either what they owe or the amount of their refund will be within $500 of even.

If they will be owing more I will discuss with them either filing Estimated or do a work-up to determine what changes they need for their withholding for the remainder of the year.

Even if TT generate the Estimated Vouchers, there is no need to file them if you adjust withholding. But either method is better than having to pay the penalty for underpayment of estimated.

And, for the OP - did you let the TT program know what was your taxable income (1040 line 61) from last year? The penalty can be fully or partially waived depending on the prior year tax
]Mike (CPA Retired)

 

[seashoreCM]

One easy way to estimate your taxes for the current year (2012) is this:

Take the grand total of your 2011 tax (includes penalties, self employment tax, etc. and not to be confused with the remaining amount still due). Divide by 4.

The first installment of your 2012 tax is due ca April 15. Check your withholding totals you see on your pay stubs at that time and if if you are not up to the first 1/4'th of last year's tax, then send in an estimated payment for the difference.

Repeat for the other installment dates (ca June 15, September 15, and the next January 15, they're not equally spaced through the year). (Dates may be a little different for state tax.)

After doing this, if you do owe more then there will be no penalties when you pay by the next April 15 (2013 here).

 

[Zim]

I work in one state and live in another, because of the laws of each, I am responsible to pay my own state tax (it doesn't come out of my paycheck automatically).

The first year I did the whole voucher thing, paying them every time, on time. When I brought my tax stuff to the tax preparer, she was shocked I had them all paid... apparently most people don't. The next year I paid two of the four... which still surprised her. And I got an extra tax bill in the mail as a penalty of $18. So this year I didn't pay any of it and am expecting the same-ish penalty. I'm hoping I'm better about adhering to the voucher schedule this year, as I hate the idea of giving even a few more dollars to the government!