The Small Business Tax Help Blog

Posts Tagged ‘estimated’

Question: How much penalty will I pay since I owe about $1800 in federal taxes this year?

My husband and I do not have any additional income other then our salaried jobs. He claims 0 while I claim 1. For some reason, there was an error throughout the year in the amount that should have been taken out from my paycheck for federal. Last year we owed 1181 and paid 14 dollars in underpayment penalties and we didn’t send in Estimated Tax Payments throughout the year for 2009, since we figured we would be okay. What kind of penalty am I looking at?

Answer: It looks like the IRS charged you interest on your underpayment last year of about 1.2%. Basically they are saying that the money should have been with them instead of with you and they charged you a fee for that privilege.

I would think that the same fee would be applied to this year’s underpayment, or about $22 on the $1800 shortfall.

Are Federal Workers Underpaid? (Part 2 of 2)

Question: Why does my tax return go down when I enter a second W-2?

I entered my first W-2 and my wages were 27.5k with 2.9k federal withheld. I got an estimated tax return and then entered my second W-2 ( I am a restaurant manager and got shifted temporarily) which made 2.9k with 350.00 federal withheld. Both federal amounts are roughly the same %, around 11, so why did my estimated return go from 650 to 500 after entering the second? Something similar happened to me last year.

Answer: Because your whole exemption and standard deduction were already taken out from the first W-2, so there was nothing left for the second one and it was ALL taxed.

The refund amount means nothing at all until all of your info is entered. It’s only what you would get if you didn’t have anything more to enter.

Rice and Curry (Black And Yellow Remix) Parody LOL (Indian Version)

Question: Form 1099 and estimated tax?

I made about 7 grand working under 1099. I gotta do Form 1040es for the federal during next two weeks.

I understand that I can claim deductions for business related expenses (meal, transportation, cell phone bill and etc). How do you claim deductions for such expenses. Is there a seperate IRS form for calculating such a deduction? AND DO YOU BETTER BE READY TO FURNISH EACH AND EVERY RECEIPTS FOR SUCH EXPENSES? I don’t have all the receipts.

How do you do the likewise for the state of Maryland?

Advice will be appreciated.

Answer: You will add a Schedule C form to your 1040 and you will not be able to file a 1040ez, i.e. you’ll have to itemize to get the business deduction, but in your case it will probably be worth it. And yes, officially you’ll need receipts, but if you never get audited…

Maryland will (most likely) take your net income from the federal form.

Roper St. Francis battles Trident center’s expansion

Roper St. Francis Healthcare is fighting Trident Health System’s proposed $26 million expansion of Summerville Medical Center.

How to Complete a 1040A Tax Form : 1040A Tax Credit Tips

Question: Business Math Software?

Business Math software?
Hello,
Is there a good software out there to help figure out stuff like:
interest rates on mortgages, credit on home equity loans, estimates, inventory turnover, excis and property tax and income taxes, stocks, bonds…etc.

Webmath.com only has interest calculations..
I need something good I could buy that will do most of the stuff above.

Thanks

Answer: sure theres heaps of business maths software http://download.com rated by users and cnet staff

Cognizant, Visma in outsourcing pact with Norway Post

Cognizant Technology Solutions, the US-based leading provider of information technology, consulting, and business process outsourcing services, and the Norway-based Visma, provider of business software and services for accounting and administration, have entered into an outsourcing arrangement with Norway Post to deliver finance and accounting (F&A) services.

Ronald Reagan: Address to Junior High School Students – Part 4 (1988)

Question: Estimated quarterly tax payments…?

One of my friends lives in MA and is only due to make about $6600/$6700 this year. Does he owe any state and federal tax? As well as S.S., Medicare and Self employment tax? If so, when does he have to pay the SE and FICA tax and how des he go about doing that? He’s paying federal tax payments through tax vouchers. Any help for him, thanx…

Answer: 6,600-6,700 should not generate a lot of taxes.

If he’s already paying federal via estimated tax vouchers (1040ES), then he should be okay, based on the income amount. By the way, self-employment tax (FICA is part of SE tax) is combined with income tax to make the Estimated Tax Payments.

You can have your friend read over publication 505 on estimated taxes:

http://www.irs.gov/publications/p505/index.html

MA should have similar publication on estimated taxes. Do a quick google search.

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The Economy and the American Family