FL 22 year old, bought 6/23/07, confused on taxes

[sub3marathonman]

<div class='quotetop'>QUOTE(JimN @ Jul 7 2007, 10:01 PM) [snapback]474870[/snapback]</div>

If income taxes have not been deducted from your checks and you have not made quarterly estimated payments have your employer withhold extra from your paychecks for the rest of the year to avoid any penalties.

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As an added note, partially based on whitespider's age of 22, it may be possible that there wouldn't be any penalty even if no extra income is withheld from the paychecks.

Also, as another note, I believe money withheld is considered withheld in equal amounts throughout the year, no matter when the money was actually withheld. So if it is withheld in December that would still help you if you make estimated tax payments throughout the year. It is possible that somebody could avoid the estimated tax penalty this way if they were able to withhold enough later in the year if they had a shortfall on an estimated tax payment.

There is no tax penalty if you have paid at least 90% (I believe) of your previous year's tax liability. I always try to pay at least 100% of the previous year's amount. Wihitespider may even have had no liability as a 21-year-old. Also, I believe there is no tax penalty if you don't owe more than $500 when the taxes are due. Although you would still need to have made the timely estimated tax payments, if you need to make estimated tax payments.

[sassypamela]

Not a fan of turbo tax. If you have anything remotely funky going on, it takes you through all that data entry and then tells you to take it to H&R block because it can't do your taxes. It will also let you do things that you shouldn't be able to do such as claim more mortgage interest than is allowed making you think you are getting a return when in realty you owe uncle sam a HUGE amount of money.

If you are not cookie cutter (i.e., have big mortgages, rentals props, sell/buy stocks, unreimbursed business expenses) then don't use turbo tax. Use a tax professional.

[Bill Spransy]

I have two brothers who are CPA's and they (both my brothers and CPA's in general) are definately worth the investment. UNless of course your income tends to be on the marginal level and then it's just as well to do the short forms of the 1040's.
Having said that Has anyone watched the Aaron Russo film "From Freedom to Fascism" ? The film, I believe, is still up on youtube and/or google video. Mr. Russo directed several hit movies, including "Trading Spaces" but what he shows in this film is really no laughing matter. It points out that the Fedreal Reserve Bank is a private institution and that the vast majority of income taxes goes to paying off the interest the Fed charges the government for loans. Another intersting point he brings out is that there is no place in Federal code which states that the federal income tax is compulsory. It's a very disturbing piece of work for all of us who were raised in the knowledge that the government exitst to help not exploit it's citizenry.




<div class='quotetop'>QUOTE(ChristoB @ Jul 7 2007, 07:15 PM) [snapback]474877[/snapback]</div>

...Another fan of TurboTax here... I've used the Online version for 3 or 4 years now (vs. buy-and-install version) including a year with an unusual bit of stock-option transacting. My credit union, as well as my 401k provider, both offer a discounted rate for it each year.
Also check with your state---while TurboTax online always graciously offers to electronically file my VA return for something like $29, VA's own governmental website offers FREE state returns (completed and filed online) to all residents. And as mentioned above, depending on your income, you may qualify for any number of the free, online Federal return packages, vs. paying the e-filing fee in TurboTax.
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