- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Best option for inability to pay taxes
Posted on 4/15/16 at 11:05 pm
Posted on 4/15/16 at 11:05 pm
I owe more than I anticipated. Messed up not knowing interstate state income tax laws in MS and TN - worked in TN where there are no state income taxes, so I owe much more than usual this year. I owe $2,000 altogether. I only have $1,000 in the bank. I can easily pay it off whole May 1 after my next paycheck. In the meantime, what is the best short-term solution?
12
Posted on 4/15/16 at 11:10 pm to rpg37
sounds like need to start saving more if you only have $1k in the bank.
Can you file for an extension?
Can you file for an extension?
Posted on 4/15/16 at 11:11 pm to b-rab2
quote:
sounds like need to start saving more if you only have $1k in the bank.
I save religiously, but that money goes straight to student loans and IRAs. I try to avoid carrying much in my checking because it is rather pointless. I have liquid funds, but I would like to avoid tapping into those.
I guess I can file an extension, I am unfamiliar with the whole options list.
Posted on 4/15/16 at 11:33 pm to rpg37
quote:Then it's not savings...
I save religiously, but that money goes straight to student loans and IRAs.
Posted on 4/16/16 at 12:54 am to rpg37
quote:
r. I owe $2,000 altogether. I only have $1,000 in the bank. I can easily pay it off whole May 1 after my next paycheck. In the meantime, what is the best short-term solution?
I'm assuming this is state taxes owed. If so, immediately contact both state tax agencies and set up a payment plan. They will probably charge you interest, but if you get ahead of standard procedure, you may avoid some penalties.
Posted on 4/16/16 at 2:23 am to rpg37
Just set up a payment plan with the irs
Posted on 4/16/16 at 7:08 am to b-rab2
quote:
sounds like need to start saving more if you only have $1k in the bank.
The guy asked for help. Not a lecture. shite.
Posted on 4/16/16 at 8:36 am to rpg37
Tax agencies have extended payment plans, you certainly will not be the first who needed one. There will probably be some fee associated with it, but it won't be terrible. More like a slap on the wrist, not an anal raping.
Life will go on, just make sure you file on time. There are additional penalties for failure to file that you won't enjoy.
Life will go on, just make sure you file on time. There are additional penalties for failure to file that you won't enjoy.
Posted on 4/16/16 at 8:43 am to rpg37
If you have a Roth IRA you can use the principal to pay the amount due with no penalty, then when your next paycheck comes in put the amount back into the Roth IRA.
Posted on 4/16/16 at 8:50 am to rpg37
Just a FYI an extension only extends your time to file. You still owe the $$ by the deadline.
I'm not sure based on the information provided if you owe money to MS or to IRS. If IRS, file and then pay as much as you can before Monday. Then call them in May and ask them what your remaining balance will be. By that point they likely will have not even sent a notice of underpayment.
If MS, check when their filing deadline is. I know LA is May 15, not April.
I'm not sure based on the information provided if you owe money to MS or to IRS. If IRS, file and then pay as much as you can before Monday. Then call them in May and ask them what your remaining balance will be. By that point they likely will have not even sent a notice of underpayment.
If MS, check when their filing deadline is. I know LA is May 15, not April.
Posted on 4/16/16 at 9:11 am to rpg37
Are you sure there are no deductions you are missing? Just for shits and giggles, why don't you look and see what the chances of getting audited are if you make less than $150,000 per year.
Spoiler Alert: You have a better chance of getting hit by a bus today.
Spoiler Alert: You have a better chance of getting hit by a bus today.
Posted on 4/16/16 at 9:55 am to rpg37
You can probably file for extension...
Going forward-Keep $5k minimum in the bank for emergencies. You will be put in a real bad situation if something happens where you income flow stops and you only have $1k in the bank.
Going forward-Keep $5k minimum in the bank for emergencies. You will be put in a real bad situation if something happens where you income flow stops and you only have $1k in the bank.
This post was edited on 4/16/16 at 9:56 am
Posted on 4/16/16 at 10:02 am to rpg37
File an extension. You'll owe a few extra bucks in interest. You'll be fine.
Posted on 4/16/16 at 10:15 am to rpg37
I'm not a CPA, but shouldn't working in a state with no income tax mean you owe a lot less tax? Does MS just tax it anyway?
Posted on 4/16/16 at 10:15 am to rpg37
Go ahead and file and pay what you can now. If it's state, check on their website on installment plans, but if you'll have the money on May 1, I'd just wait and call them then to ask the balance and pay it off then. You can so an installment agreement with the IRS on their website.
Paying a little now will save you a little money in interest and penalties.
Paying a little now will save you a little money in interest and penalties.
Posted on 4/16/16 at 10:24 am to TheHiddenFlask
quote:
Does MS just tax it anyway?
Yeah, sounds like it. Some states only tax residents for income earned in that state, some tax ALL income regardless of where it was earned. Sounds like MS is the latter.
Posted on 4/16/16 at 11:10 am to The Spleen
quote:
Yeah, sounds like it. Some states only tax residents for income earned in that state, some tax ALL income regardless of where it was earned. Sounds like MS is the latter.
All states (maybe there is one or two that don't, but this is the general rule) that have a personal income tax, tax the income of all residents, no matter where earned.
If you also pay tax to another state, because you do work in that state, you can get a credit to offset some of the tax in your home state.
Posted on 4/16/16 at 11:40 am to I Love Bama
quote:
Are you sure there are no deductions you are missing? Just for shits and giggles, why don't you look and see what the chances of getting audited are if you make less than $150,000 per year.
Spoiler Alert: You have a better chance of getting hit by a bus today.
Then one day when you run for office and have to release all your tax returns you get burned for fraudulent filings.
Seriously though, I am sure I Love Bama meant it as a joke. Hope you realize that and definitely don't go this route.
Posted on 4/16/16 at 11:56 am to Beerinthepocket
quote:
f you have a Roth IRA you can use the principal to pay the amount due with no penalty, then when your next paycheck comes in put the amount back into the Roth IRA.
This is only true if the Roth is five years old minimum...mine is only 3.
Posted on 4/16/16 at 12:29 pm to rpg37
Can take your contributions out at any time.
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News