Say what??????

[mickeyfan2]

No state income tax here (God Bless Texas!)

But, I have a side job for which I receive a 1099, no witholding and that's gonna hurt.

Aren't you required to pay quarterly?

 

[Christine]

wvjules--make sure your employer is taking out enough state taxes. Easy to get it screwed up in Maryland as Maryland has the "piggyback" county tax on top of the state tax. Oftentimes, employers don't take the piggyback tax out and that's why you end up owing so much to Maryland. I often had that problem when I was living in Maryland.

 

[Chicago526]

I will say this for IL. 3% flat income tax with little in the way of deductions. I usually either owe one or two dollars, or get a refund of one or two dollars! The form is so easy that until they started bundleing the state with the federal, I didn't even bother using TurboTax to do my state return, it wasn't worth the extra cost!

If you claim 0 and still owe, you can have your employer withhold extra from your paycheck, so you won't owe the Feds such a large amount in April. Or you can put a little extra away in a high yield internet savings account, that way you're at least earning interest on the money before you give it to Uncle Sam.

 

[Mrs.Toad]

Aren't you required to pay quarterly?

Only if the withholding from the other job is less than 90% of the current year's total tax, or 100% of the prior year's. (Unless rules have changed -- it's been a few years since I worked as a CPA)


We did a really good job estimating dh's withholding this year. Although we're still waiting for a couple of 1099's, it looks like we are going to owe the IRS one dollar.

 

[mickeyfan2]

Only if the withholding from the other job is less than 90% of the current year's total tax, or 100% of the prior year's. (Unless rules have changed -- it's been a few years since I worked as a CPA)

The way it sounded to me was it was her only job. I agree if her other job paid in enough taxes she is fine.

I thought her side job was in addition to her husband's military service. If this was in addition to her other job, then I was wrong.

 

[Bob Slydell]

Only if the withholding from the other job is less than 90% of the current year's total tax, or 100% of the prior year's. (Unless rules have changed -- it's been a few years since I worked as a CPA)

I believe it's 110% of prior year taxes now -- we had to look it up to make sure we paid enough estimated payments this year.

ETA: Actually, both are relevant, depending on AGI, it's either 100% or 110%.

 

[SeeVee]

EIC = stealing from the productive to give to the under/non productive.

I am not sure what is more shameful, the fact that it exists or that somone takes it without any compunction whatsoever.

 

[wvjules]

EIC = stealing from the productive to give to the under/non productive.

I am not sure what is more shameful, the fact that it exists or that somone takes it without any compunction whatsoever.

I'm hadly under/non productive. I just wasn't compensated enough. I'm doing almost the same job but in a new city and made $20K more than I did last year. If I were not productive, I'm sure I'd still be making less and not received a promotion. But nice of you to drop by and sprinkle us all with a little bit o' sunshine.

 

[LaraK]

Welcome to the People's Republic of Maryland.

Before we had kids we were required to pay quarterly installments to the government.

 

[Bob Slydell]

EIC = stealing from the productive to give to the under/non productive.

I am not sure what is more shameful, the fact that it exists or that somone takes it without any compunction whatsoever.

I'm not a big fan of the concept of the EIC, but as long as it exists, people would be stupid not to take the refund.

 

[Mrs.Toad]

EIC = stealing from the productive to give to the under/non productive.

I am not sure what is more shameful, the fact that it exists or that somone takes it without any compunction whatsoever.

Whatever your opinion of the EIC, it certainly isn't shameful to make use of legal credits and/or deductions that you qualify for.

That also applies to Foreign Tax Credits, mortgage interest on a vacation home, and other benefits that are primarily available only to higher-income taxpayers.

The way it sounded to me was it was her only job. I agree if her other job paid in enough taxes she is fine.

I thought her side job was in addition to her husband's military service. If this was in addition to her other job, then I was wrong.

Not to be argumentative, but even if it was her only job, if she and her dh file jointly, they are still OK if his withholding covers the 90%/100%/110% rule.

 

[mickeyfan2]

Not to be argumentative, but even if it was her only job, if she and her dh file jointly, they are still OK if his withholding covers the 90%/100%/110% rule.

I understand your point, since my job can result in 1099s. But it is really hard to just use regular withholdings and have a second job and not owe too much. Believe me I should know. There have been years where DH and I both claim 0 but withhold at the higher single rate and still owe Uncle Sam. Uncle Sam is not overly happy when you owe too much.

 

[Pooh_Friend#1]

A friend of mine works for the Federal government and they don't take out state taxes from their pay so basically whatever he gets back from his federal return goes to pay the state.

I work for the Federal government and they take state taxes out of my pay.