2011 Taxes

**Santo Tomas** · 02-02-2012, 10:03 AM

What is the magic potion for figuring out how much tax you should pay throughout the year? I up my tax payment every year and STILL owe money.

**CharliePC** · 02-02-2012, 10:32 AM

If it's a modest amount that you owe at the end of the year, an argument can be made this is better than getting money back. IOW, you owe a given amount of taxes for what you make during the year. The withholding is meant to spread it out. If you're getting a large refund, you're overpaying during the year. You're letting the gov't use your money, interest free, during the year rather than you being able to use it. Then, you have to wait for them to give you your own money back.

My 2 pfennings-

**Ops NCO** · 02-02-2012, 10:36 AM

Have you tried using a tax estimator? Like this: http://www.1040.com/tax-tools/tax-estimator/

Charlie - You are correct from a purely financial planning point of view. But, since most people lack the discipline to save any extra money during the year, the "forced saving" caused by tax overpayment can actually be the only way they would save much of anything. This, of course, presumes they would actually take the refund and either put it into savings, an IRA, or pay down debt.

**Santo Tomas** · 02-02-2012, 10:42 AM

Thanks. I'll give it a look. I would rather get money back than owe. HH6 is a great CFO and knows what to do with the return.

**Jeff82** · 02-02-2012, 11:14 AM

Just send it all to them, they'll give you back what they want you to have.

"From each according to his ability, to each according to his need." Come-on, get with it! Get on the bandwagon!

**kenlavine1** · 02-02-2012, 05:02 PM

Originally Posted by CharliePC

If it's a modest amount that you owe at the end of the year, an argument can be made this is better than getting money back. IOW, you owe a given amount of taxes for what you make during the year. The withholding is meant to spread it out. If you're getting a large refund, you're overpaying during the year. You're letting the gov't use your money, interest free, during the year rather than you being able to use it. Then, you have to wait for them to give you your own money back.

My 2 pfennings-

This.
I always owe at the end of the year, I don't like to lend money to deadbeats.

**Rocket1972** · 02-02-2012, 06:03 PM

It is hit and miss with me. Sometimes I pay and sometimes I don't. It seems like I end up paying one year and the next I get a refund. Still trying to dial it in myself. This year I had to pay but it was offset by my State taxes which I got a refund for. Go freaking figure.

**PIKE** · 05-05-2012, 03:59 PM

I ended up at even with Fed and State.

**judemars** · 01-22-2013, 02:06 AM

There is no potion for it, you just need an accountant. We need to be aware of our taxes with the expenses and payments annually. Budgeting is necessary for an organized spending. Collectors are irritating enough without having to worry about being scammed. The very best thing to do is just to pay off all your debts, so you do not have to be concerned about it.

**Jeff82** · 01-22-2013, 11:18 AM

Holy necro-thread-mancer Batman!

**Grouchy Hippo** · 01-22-2013, 11:42 AM

It is hit and miss with me. Sometimes I pay and sometimes I don't.

Rocket here I always thought you could go to jail for that. Thanks for letting me know I can do that from now on.

Just send it all to them, they'll give you back what they want you to have.

Jeff I was thinking something similar except that he could send it all to me and I would take care of paying things for him.

**Old All American** · 01-22-2013, 11:50 AM

Since I started losing my kids as deductions I haven't been able to figure out the magic number - has gotten worse since retiring. I think we'll be okay this year but concerned about the next - figure on having a talk with our accountant when we do taxes to see if we need to up our withholdings considering the new tax laws. The rates may have stayed the same for most folks but I understand a lot of deductions we've had are either gone or reduced since the beginning of the year - keep hearing conflicting info. I'm with the guys above - I don't like interest-free loans to the govt, but know from bitter experience if you under-withold they try to come at you with penalties for under-witholding, too. I'm happy if I can come within a hundred dollars either way. I either write a check or get a nice night out with the HH6.

**GERONIMO** · 01-29-2013, 01:06 PM

After talking to my accountant I got some good advice a couple of years ago. The government is greedy to the point that if you do not pay in within a certain percentage there is a penalty. Although I am retired, retired and retired I am now paying in quartily. It isn't hard to do. EFTPS is easy to set up on your computer and it can be taken out of any type of checking account. Just a little information. AIRBORNE! GERONIMO!!