I Don't Understand....

[badstar]

I OWE money on my taxes????

It's not a huge amount, I won't have a problem paying it but...I owe money on my taxes?

Comments

Avoiding underpayment

[saratoga80.livejournal.com]

Renee,

The best insurance against this is to set aside $10 or $20 for each tax (fed/state) in your tax forms. I set aside $20 per pay period (state) and $10 per pay period (fed). The government pays interest on this overpayment, and I have never underpaid this way. yeah, the $30 extra per pay check is nice, but in the end, it pays off.

-- Rich

Re: Avoiding underpayment

[fuego.livejournal.com]

this is a completey new thing to me. i have enver owed, and i don't think i've ever had a refund smaller than $300

Re: Avoiding underpayment

[saratoga80.livejournal.com]

I owed state tax last year. Someitmes, the witholder (i.e. the employer) miscalculates the tax or their payroll service does. it's why I file at the higher single rate, and hold back more per check. If the government can find a way to screw you, it will, so I hold as much as I can.