Are you getting a return?

[The_Tick]

I have now done a better analysis of my income and expenses. Looks like I won't have to come up with $6,000. I had forgotten about all the expensive business trips I took last year, like the one to Dallas in September.

I have it down to where I will only owe an additional $1,500. I expect my CPA will come up with something to take care of that.

How often does this happen? I owe 1k right now. My friends have told me that I need to fudge to get that down to zero.

I am typically not a person who fudges. How often do people do that?

I am more inclined to pay it so that I don't have a problem sleeping at night.

[Art Vandelay]

I survived! I love the fact my acct told me I need to take my wife on a nice vacation; just make sure we discuss the business a couple times while sitting on the beach.

[landpoke]

They are such a pain in the butt. Early in my career I got clients into an oil and gas limited partnership. The partnership actually worked out fine, but all I got was complaints over the K-1 and it's lateness in arriving. Didn't matter they were making money, they hated the K-1 coming late.

I used to work for some folks who put these together. We were always late with the K-1's. In fact, this time of year was filled with angry phone calls from partners looking for their forms. Thankfully I wasn't involved with the money raising or accounting side.

[mUUser]

First preliminary glance and it looks like I will have to come up with about $10,000.

Guessing that's about where we'll end up. Maybe higher.

Lesson learned. Let the acct sweat it out. Getting respectable refund instead.

[byu71]

How often does this happen? I owe 1k right now. My friends have told me that I need to fudge to get that down to zero.

I am typically not a person who fudges. How often do people do that?

I am more inclined to pay it so that I don't have a problem sleeping at night.

I do not think I am fudging. I initially guess at what my income was and what my expenses were. Based on that guess, I think I mentioned I thought I was going to get hammered and couldn't figure out why based on my withholding during the year.

Doing an adding of the figures that I am going to turn in, I had forgot some things, namely some business expenses I had incurred. I forgot I bought a new desktop and two new monitors for my office. I also had forgotten I had about $4k withheld on some other income I received. I had counted the income, but forgot about the withholding. I am just hoping the accountant finds a couple of other things I forgot that are in my favor.

I don't fudge. I have been through an audit before. I would rather pay an extra $1,000 in taxes than go through one of those again.

[The_Tick]

I do not think I am fudging. I initially guess at what my income was and what my expenses were. Based on that guess, I think I mentioned I thought I was going to get hammered and couldn't figure out why based on my withholding during the year.

Doing an adding of the figures that I am going to turn in, I had forgot some things, namely some business expenses I had incurred. I forgot I bought a new desktop and two new monitors for my office. I also had forgotten I had about $4k withheld on some other income I received. I had counted the income, but forgot about the withholding. I am just hoping the accountant finds a couple of other things I forgot that are in my favor.

I don't fudge. I have been through an audit before. I would rather pay an extra $1,000 in taxes than go through one of those again.

I wasn't implying that you were doing that bro...sorry.

I meant to ask the question in general.

[byu71]

I wasn't implying that you were doing that bro...sorry.

I meant to ask the question in general.

No problem. I re-read my post and I can see how I might have thought I was implying that.

[kccougar]

I have a question about correcting a return. I filed a month or so ago, and I've already received my refund. On my form, I indicated that I would be investing $8k in an IRA for this year, knowing I have until April 15th to do so.

Thinking about it some more, I would prefer to put the money into a Roth IRA, but since those contributions are supposed to be made with after-tax dollars, if I did that I would need to correct my forms to include the $8k as taxable income.

Is this a bigger deal than simply filling out Form 1040X and writing them a check?

[il Padrino Ute]

Still waiting for the K-1.

:anger:

[Tim]

I still don't know. Because of my expat situation (paying taxes to the US and Japan, etc.), my company provided me a tax accountant. I can't get them to tell me the status of my return. I think I'll email them today and nag them.

[old_gregg]

you know what's a bunch of bullshit? a single, full time undergraduate student owing $400 after what i thought would be adequate withholdings.

[Moliere]

I have a question about correcting a return. I filed a month or so ago, and I've already received my refund. On my form, I indicated that I would be investing $8k in an IRA for this year, knowing I have until April 15th to do so.

Thinking about it some more, I would prefer to put the money into a Roth IRA, but since those contributions are supposed to be made with after-tax dollars, if I did that I would need to correct my forms to include the $8k as taxable income.

Is this a bigger deal than simply filling out Form 1040X and writing them a check?

Just file the 1040X and cut them a check. I believe not penalties would apply since you are amending it prior to April 15.

Roth IRAs are a good way to go for people who really pay low taxes now. I've got kids so I have a lot of deductions, which lowers my tax rate and I can only imagine that taxes will be higher for me when I retire than they are now.

[beefytee]

I've filed 1040X's a couple of times. It isn't fun, but not too bad. The worst is the feeling that you already wrapped up the pain of doing taxes, only to start over again.

I was shocked that after the last few years of paying plenty of income tax, I actually got back $700 from the government this year with the "Making work pay Credit".

My tax burden was only about $100 and I got $800 for the credit. Now I don't make a lot of money compared to a lot of people on this board, and my income was down significantly this year, but I still make plenty and it seem ridiculous that I didn't pay any Federal Income taxes last year.

I know I paid a lot in Medicare and Social Security, but still. The debt/deficit is ridiculous.

With all that said, I've already taken the money and ran.

[U-Ute]

Had a baby last year (#4), and even though I adjusted my witholding so I thought I would be close to breaking even, I still got a decent refund back from both the state and the fed.

Win win.

Go figure.

U-Ute

[U-Ute]

I couldn't write the tax code in a way that favors me more.

5 kids, large mortgage, large 401K, large HSA, tithing. I'm not wealthy but I make about what you'd expect an MBA with 15 years experience should make, and my fed tax liability was about 1%.

I don't like giving the gov't an interest free loan on my tax refund, but it's impossible for me not to, when part of my income is from a bonus that's automatically taxed at 25%.

I pay four times to the state of Utah (in income tax) what I pay to the fed. bastards.

Hey! We have something in common!

When I looked at my tax liability to my gross earnings, I couldn't believe how little I really pay, about 3%-4%. Mortage, kids, 401k, UESP, property taxes, HSA, donations, and some small stock losses cut my net to 60% of my gross. The majority of which is due to those first 3, and, same as you, taxes on a bonus.

I didn't compare what I actually paid to the state vs the fed. I'm going to have to check that out when I get home.

U-Ute