I have given the readers of this blog an insight into my taxes, so I felt the need to give a conclusion to my income tax “situation” (yes, it has been upgraded to a situation). These past updates include:
- Meeting my CPA Tomorrow – What should You Bring when Meeting with your CPA?
- Taxes are E-Files; What am I going to do with the Refund?
- Where is my 2008 Tax Refund
2008 New York State Tax Update
Well! I expected a check from New York State for approximately $275 bucks. What do I get? A Bill for $32! Yeah that sucks. After some easy investigation work I determined the information we provided the CPA was wrong. The Wife, as a self employed person, pays estimated payments. The IRS provides us with a great, easy definition of Estimated payments,
Estimated tax is the method used to pay tax on income that is not subject to withholding. This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes and awards. You also may have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough.
Estimated tax is used to pay both income tax and self-employment tax, as well as other taxes and amounts reported on your tax return. If you do not pay enough through withholding or estimated tax payments, you may be charged a penalty. If you do not pay enough by the due date of each payment period you may be charged a penalty even if you are due a refund when you file your tax return.
We told the CPA that we paid $XXX.00 every quarter, to the State of New York when she had not. She actually paid $XXX.00 for 3 of the quarters, and less for one of the quarters! Notwithstanding my dim view of the competency of the State of New York – they figured this problem out QUICKLY and ASSESED ME A NICE BILL!
Luckily, I lost the bill, but with a quick phone call to the Department of Finance and Taxation I was able to pay the bill with my debit card and have another copy sent to me for my records.
2008 Federal Tax Update
Well on Friday I checked my bank account (which I do 3 times a day – obsessed? Probably) and there was a huge deposit from the IRS. SCORE. But wait a min! It was $1,000 LESS THAN WHAT I WAS EXPECTING. LITERALLY $1,000 LESS.
After researching a little bit, the people at turbo tax were nice enough to inform me,
If the tax refund amount you received is different than what you were expecting, you will receive a letter from the IRS that explains why your refund amount was changed. It may take one to two months after you filed your income tax return to receive formal notification from the IRS regarding your tax refund.
Well, guess I am waiting for the letter, and there is also the issue of whether I need to file a 1040x (an amendment to your main tax return) telling the IRS about the New York Problem? I know the answer is Yes, I should tell the IRS, but I will wait until I receive the letter and see what happens.
Regardless of my problems or the lower amount, I am PSYCHED to go pay down some credit cards. Specifically I can finally take care of that Stupid Bank of America Credit Card.
Anyone else have as many speed bumps?