IRS refunds

[peejay 327]

I did my taxes on TurboTax online today and I owe $1153. OUCH!!! (Where are those tax cuts George?) So I saved up to that point and logged off. I'll wait till the deadline to cough up what I owe and finish up my return online.

My stepdaughter dropped out of college and I couldn't claim her this year on my taxes. And I didn't revise my W-4 to eliminate her as a dependent last year. So bad, so sad.

I did submit a revised W-4 to the payroll department at my work at the beginning of this tax year. There will be no surprises on my 2006 taxes next year! At least I hope not.

[pax 0]

When you do owe, you don't need to pay the whole thing up front, do you? Like you can arrange some kind of payment plan?

I've never owed before and I'll be quite annoyed if I do, but it's not like I can just decide to not pay.

Edited February 10, 2006 by pax

[Stefanie 1]

I filed ours through HR Block this Tuesday.

With the refund, we are going to pay off our credit cards.

[I'm Gone 60]

I sent in the state and federal paper forms on January 28th. I have been checking online every few days and yesterday the state acknowledged receipt and I haven't checked federal today.

Normally, state takes 2 or 3 weeks to process the refund and federal taxes 4 or 5. We have no pressing need for the money, so no big deal if it takes a few more weeks.

I have done my own taxes, exept for the first year after I bought my home. Forms don't change that much from year to year, so I figure I can write numbers in boxes and add as well as anyone.

[Flames9_RN 358]

From IRS.GOV

Can I ask to make installment payments on the amount I owe?

Yes. If you cannot pay the full amount due as shown on your return, you can ask to make monthly installment payments. However, you will be charged a one time user fee of $43.00, as well as interest on any tax not paid by its due date, and you can be charged a late payment penalty unless you can show reasonable cause for not paying the tax by April 15, even if your request to pay in installments is granted. Before requesting an installment agreement, you should consider less costly alternatives such as a bank loan.

To request an installment agreement, send Form 9465 (PDF), Installment Agreement Request, with your return or call (800) 829-1040. You should receive a response within 30 days. For more details on installment payments, refer to Tax Topic 202, What to do if You Can't Pay Your Tax, or Publication 594 (PDF), Understanding the Collection Process.

References:

* Publication 594 (PDF), Understanding the Collection Process

* Form 9465 (PDF), Installment Agreement Request

* Tax Topic 202, What to do if You Can't Pay Your Tax

What kind of penalties and interest will I be charged for paying and filing my taxes late?

Interest, compounded daily, is charged on any unpaid tax from the due date of the return until the date of payment. The interest rate is the federal short-term rate plus 3 percent. That rate is determined every three months.

For current interest rates, go to News Releases and Fact Sheets and find the most recent Internal Revenue release entitled Quarterly Interest Rates.

In addition, if you filed on time but didn't pay on time, you'll generally have to pay a late payment penalty of one-half of one percent of the tax owed for each month, or part of a month, that the tax remains unpaid after the due date, not exceeding 25 percent. However, you will not have to pay the penalty if you can show reasonable cause for the failure. The one-half of one percent rate increases to one percent if the tax remains unpaid after several bills have been sent to you and the IRS issues a notice of intent to levy.

Beginning January 1, 2000, if you filed a timely return and are paying your tax pursuant to an installment agreement, the penalty is one-quarter of one percent for each month, or part of a month, that the installment agreement is in effect.

If you did not file on time and owe tax, you may owe an additional penalty for failure to file unless you can show reasonable cause. The combined penalty is 5 percent (4.5% late filing, 0.5% late payment) for each month, or part of a month, that your return was late, up to 25%. The late filing penalty applies to the net amount due, which is the tax shown on your return and any additional tax found to be due, as reduced by any credits for withholding and estimated tax and any timely payments made with the return. After five months, if you still have not paid, the 0.5% failure-to-pay penalty continues to run, up to 25%, until the tax is paid. Thus, the total penalty for failure to file and pay can be 47.5% (22.5% late filing, 25% late payment) of the tax owed. Also, if your return was over 60 days late, the minimum failure-to-file penalty is the smaller of $100 or 100% of the tax required to be shown on the return.

Also, refer to Tax Topic 653, IRS Notices and Bills and Penalty and Interest Charges.

References:

* Tax Topic 653, IRS notices and bills and penalty and interest charges

* News Releases and Fact Sheets

[junglee069 0]

i always fear owing the irs money.

[sparkofcreation 0]

Last year I filed on Jan. 29 and got the refund the first week of March (first married refund = big bucks, and G had only just started working a couple days before).

This year we have a mailman who will only deliver our mail when his mailbag isn't too heavy (we're at the very end of his route) so things routinely get lost. (He also will only *pick up* mail if his mailbag isn't too heavy, so forget trying to leave anything in the mailbox for pickup--he's let it sit up to two weeks sometimes!) Complaining to the post office just makes more of our mail get lost.

Anyway so so far this year we got both my W-2s and one of G's, but at the start of January 2005 he worked ONE DAY for a certain temp agency [and netted $0--tax mix-up] before starting the job he held for the past year, and we don't have a W-2 from them. He drove all the way out to their office the other day and filled out paperwork for a replacement, which is allegedly going to arrive Monday so we can file before we move next weekend, but it's driving us CRAZY that this is being held up over a W-2 for ONE day.

Edited February 10, 2006 by sparkofcreation

[babybunny 2]

I have prepared my taxes but, will file later. I am avoiding spending the money I am getting. I am saving it for our honeymoon.

[w¡n9Nµ7 §£@¥€r 123]

I have prepared my taxes but, will file later. I am avoiding spending the money I am getting. I am saving it for our honeymoon.

I'm not even sure why I'm waiting to file. I have a decent refund coming to me, too. Maybe I should file soon.

i always fear owing the irs money.

It would never happen if they'd just simplify the goddamn tax code. When you first look at the federal tax brackets, it looks so easy. But then you start adding up your interest and dividend income, deducting your property taxes and mortgage interest; and if that wasn't bad enough, a spouse who has an "irregular" income which I simply can not begin to predict... it's ###### impossible to take the "right" amount out..

Edited February 10, 2006 by Agent Smith

[mr4422 0]

I filed on Jan 30th and got the refund direct deposited into my account this morning...10 days.

Same for me! and I have already spent half of it paying bills and credit card debt!

[Badgerbabe 0]

submitted ours through tax cut on-line and got them back already in about 10 days !

[slim 1,530]

Did mine over the Net. Took 8 or 9 days for direct deposit.

And Brother Dean is right.... Good fences make good neighbors.

[Angel7422 0]

Same here we filed ours January 25th and got it back yesterday...and its gone today. Paid on some bills, bought a new refrigerator as the other one came with the house and it was spoiling our food. As the old saying goes Easy come easy go. But at least we had the money to take care of some things with.

Angel

[Marilyn. 340]

my hubby filed his today and the accountant says he can pick up his refund in about 2 weeks... we are getting a nice sum this year although most of it is earmarked already....we have a couple of bills we need to pay off

[silly_chick 0]

My poor hubby owes a good sum of money to the IRS, because he didn't change his W-4 when his family status and other things changed And I still think it's all my fault, because I should have found it out earlier... He sent the check yesterday, though.