from the "? You Got This "weekly series , we will answer a question of our customers are on Facebook Twitter , Blog TaxACT and on the web
issue :.
I did tax my wife for the first time this year and it is she / he should pay quarterly taxes and were not. We have about $ 750 in taxes.
From what I have read is a kind of penalty and / or interest to miss these quarterly payments. How do I know what the trouble is? Does the IRS just send us a letter after we file for what we need in addition to what we said back
Answer:
All insufficient penalty is calculated based on your income, credit, etc. you entered.
TaxACT calculates this amount on Form 2210 (or 2210-F form for farmers and fishermen).
Generally, you need not pay a sufficient penalty if:
- you have less than $ 1,000 in tax after subtracting withholding
- you paid at least 0% of your total tax by withholding and / or the estimated tax payments; OR you paid tax for 2014 is equal to 100% of your 2013 tax
Example 1 :.
Let's walk through an example to the first exemption above
If you are filing as single, have zero dependents and your income is $ 40,000, your tax liability 2014 $ 4,028.
If your employer withheld federal taxes from your income from $ 3,029 at least, so you will not have a sufficient penalty.
If your tax liability is $ 4,028 and you pay $ 3,028 or less a deduction, you can have a sufficient penalty because you do not pay 0% of your total tax ($ 3.625) and your debt after tax payments and deductions is $ 1000 ($ 4,028- $ 3.028).
you can reduce your inadequate penalty by paying the amount due when filing your return by April 15. The earlier you pay and file the trouble.
Another way to possibly reduce your penalty is if you have not received a proportional income throughout the year. You can choose to use the annualized income approach on the 2210 form to refigure your penalty based on income earned in each quarter.
Your penalty may be limited depending on your income from the previous year.
Example 2:
For the second exemption, say that your situation is similar to Example 1 except for your 2013 tax liability was $ 0. In this case, you would not have a sufficient penalty for 2014 because of your amount of tax liability for the previous year.
On the other hand, let's say your tax debt in 2013 was $ 0. Then you should have $ 0 withheld during 2014 to prevent insufficient penalty.
How to avoid penalties-paid future.
If you are an employee, you can retain more federal taxes by submitting a new Form W-4 to your employer to avoid an insufficient penalty future.
You can also pay quarterly estimated tax payments to the IRS directly for the current tax year. This is especially important if you are self employed you do not have an employer to deduct your income for you.
TaxACT offers easy maintenance to help calculate estimated taxes.
0 Komentar