 How many people know the truth about the Stimulus Checks? |
After reading this I had to laugh:
http://answers.yahoo.com
The stimulus check is an advance on next years tax refund. You will have to ... |
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 Can i deduct a gun and computer i bought 4 work on my taxes? |
| i had to buy a gun 4 work and i bought a computer 4 my avon business can i deduct cost on my ... |
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 If you have a child for 7 months and his dad had him for 5 months who can file him as a dependent on taxes? |
| i have legal custody of him at this point also i will be filing soon if his dad tries to file after I do will the form be rejected or what will happen.He is 360 behind on child support and I think he ... |
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 Do you think your generation has evolved? |
| as technology has? I find it interesting that those that are younger than me seem to have ears that fit the ear pieces that go to the portable cd players and even the cell phones. Mine always fall ... |
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 I have not filled out tax forms for awhile. Am I in BIG trouble? |
| My income tax refund was intercepted because of outstanding student loans. The following year, I had a back injury and couldn't work. I lived in low income housing and depended on a church food ... |
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 My mother hasnt gotten her stimulis check/rebate check from the IRS why? |
| she filed it on april 15, at the post office in providence Rhode Island and she hasnt gotten it and she hasent received a notice when it was coming.she was suppost to get it around the middle of june.... |
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 Can you deduct the interest paid on your home for the year before? |
| I went to H&R Block last year to get my taxes done and they told me I could not deduct the taxes or interest paid on my home because it was under $10,000 but I was told later that this was untrue.... |
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 Report winings to IRS taxes are how much? |
| OKay, I entered myself into a radio contest for a chance to win a 10,000 dollar shopping spree to a mall. Well, I know i'd have to report my winning to the IRS and pay taxes. I just want to know ... |
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 If UK was handed over to the EU completely ..........? |
| would the vast ammountof taxes be brought into line with EU policy.... |
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 Gambling winnings and state tax question? |
Okay, so gambling winnings must be declared as taxable income for federal and state taxes.
What happens if you happen to win a big prize on the exact same day you move from one state to ... |
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 I worked two jobs this year one job I only worked two months I haven't received my w2? |
| The job I worked 2 months on has closed down and I'm having a hard time obtaining my W's I only made 5500 dollars should I just scrap it?... |
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 Who should claim my new daughter me or my boyfriend? he worked and made 3K but i only worked 2 weeks?? |
| how does it work we live together but arent married i want the maxium amount back and will we get the EIC also?... |
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 If one was not employed but a full time student with a dependant, are you able to still do taxes? |
| Full time student throughout the whole year and did not work. I have a dependent and student loans. Will I still get a return like for the child tax credits and refund money for schooling?... |
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 How much would it cost to import better weather? |
As much as we pay in taxes, I would think we could use some of that money to get a better climate.
Maybe we could buy Hawaii's surplus weather. Has UK ever made them an offer?... |
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 I'm self-employed. If I make quarterly estimated tax payments, do they include Medicare and Social Security? |
Do I pay separately for Medicare and Social Security or is this included in a quarterly estimated tax payment?
Thanks!... |
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 What do you think about Bush's tax rebate plan? |
| I mean a check for $800 would be nice, but 150 billion dollars for a "shot in the arm" not sure how I feel about that. What do you think??... |
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 Is anyone with last two social #'s 66 having trouble on the irs.gov rebate tool? |
| just wondering why I still cannot get status on my rebate,some people with higher numbers are able to get it.... |
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Todd H | 401k early withdrawal made in Feb 2008 - do I need to make a tax payment now or can I wait til Apr 2009 ? |
I have withdrawn money from a 401k at a former job in order to pay down high rate debt. I waited to do so until into 2008 so this would not be part of the 2007 tax year. My thinking was that this way it would be part of the 2008 tax year and so the taxes would not be due until April 2009. But then the warning as I made the withdrawal online scared me, and wasn't very clear. Basically can I wait to pay the amount that I owe (including the 10% penalty) until sometime before April 15, 2009 or am I completely screwing myself if I wait ? (No taxes or penalty have been taken out or paid yet.)
Additional Details
Multiple answers have assumed that 20% was automatically withheld - as I said in the details above, this was not the case. Maybe it doesn't usually work that way, but I had the option to choose what I wanted withdrawn from the amount, and I choose $0 at that point, on the previous advice that I had and until I could get further info like some of the answers here.
I wish I could get more of the tax experts from the site to chime in....but thanks everyone for your help! |
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bostonianinmo
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Distributions have tax withheld at 20%. This isn't enough for most folks to cover the tax plus the penalty so there will be more due than was withheld. That could trigger penalties and interest for underpayment of tax when you file next year depending on how the numbers work out.
If your debt at filing time is greater than $1,000 then you MIGHT owe penalties and interest unless you fall into one of the Safe Harbor exceptions. If you have paid in at least 90% of your total tax liability then there won't be any penalties regardless of what you owe, assuming that you pay the entire debt by April 15th. Alternatively if you've paid in 100% of LAST YEAR'S liability there won't be any penalties either.
Make sure you've paid in either 90% of your 2008 liability or 100% of your 2007 liability by Jan 15, 2009 and you should be safe. Of course, make sure that you set aside enough to cover the entire debt by April 15, 2009.
If you have any doubt about your ability to discipline yourself to set that money aside, just go ahead and make a single estimated payment using Form 1040-ES by April 15, 2008 to play it safe. |
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digdowndeepnseattle
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There is a mandatory 20% withholding on all distributions such as the one you took. They will not take more or less. What they ware saying is that you may want to pay more on your own because 20% may not be enough if you are in a higher tax bracket as you may owe a 10% penalty.
What I would do to make sure that all is well is take 10% of the distribution amount divide it by 9 (ex: 4,000*.10/9) to get a monthly withholding amount and then submit a new w-4 with my current employer asking to have that amount withheld EXTRA each month. Don't modify your exemptions or anything drastic like that; just add that little extra to what you are already doing. Yes, you're basically loaning the government money but given the low interest rates that we are seeing you wouldn't earn much on it anyways and it's better than being suprised on April 15, 2009. |
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efflandt
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An alternate method to cover the withholding instead of 1040-ES is to adjust your W-4 form enough where you work to cover extra tax/penalty. That withholds it more gradually. I do that to cover gradual annual IRA to Roth IRA conversions. But remember to change your W-4 back at the end of 2008 or more will be withheld next year than necessary.
The main point is to try not to owe more than $1000 tax after the last quarterly tax deadline January 15, 2009. |
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kristie350
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You don't need to pay until you due your taxes in 2009 beacuse the withdraw occured during the 2008 tax year. |
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rwbsvc
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You withdrew it in 2008, and you will include it in your 2008 tax return as income (in 2009) and you will pay the taxes at that point, also. The additional tax will be 10% Federal, and, of course, however the withdrawal adds to your normal tax liability. |
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daisymae
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I took money out of my savings and didn't pay the state tax until the end of the tax year using "estimated" taxes. My Federal tax was taking out but not the state tax.
Now I found that I owe my state this year plus they charged interest until the tax was paid. I say pay as soon as possible and don't delay to avoid the interest. |
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Nibblet
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well, it might be easier if you can call the irs and ask them if they can help you figure out what you will owe. This way you can make an estimated payment, so you aren't surprised when it comes time to file your taxes next year. The irs is very helpful... This may give you some assistance: http://www.irs.gov/taxtopics/tc424.html |
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Accountant 101
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Next year at tax time you will recieve 1099R distribution. You will file it on your 08 tax return since you withdrew in tax yr 08. |
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