Are you due a CA. state income tax refund and don't want to get stuck with an IOU?
- Thread starter WINEX_IHB
- Start date
usctrojanman29_IHB
New member
[quote author="WINEX" date=1233015641]Then choose to apply your refund to your 2009 state income taxes and reduce your state withholding taxes (or underpay your quarterlies) to offset the refund you are due.
There's more than one way to skin a cat.</blockquote>
Yup, just increase your exemptions and make sure that you will owe taxes even after applying the credit.
There's more than one way to skin a cat.</blockquote>
Yup, just increase your exemptions and make sure that you will owe taxes even after applying the credit.
awgee_IHB
New member
[quote author="WINEX" date=1233015641]Then choose to apply your refund to your 2009 state income taxes and reduce your state withholding taxes (or underpay your quarterlies) to offset the refund you are due.
There's more than one way to skin a cat.</blockquote>
Not bad. Thanks.
There's more than one way to skin a cat.</blockquote>
Not bad. Thanks.
awgee_IHB
New member
[quote author="usctrojanman29" date=1233019228][quote author="WINEX" date=1233015641]Then choose to apply your refund to your 2009 state income taxes and reduce your state withholding taxes (or underpay your quarterlies) to offset the refund you are due.
There's more than one way to skin a cat.</blockquote>
Yup, just increase your exemptions and make sure that you will owe taxes even after applying the credit.</blockquote>
Be careful. If you owe too much, you will be lible for penalties and interest.
There's more than one way to skin a cat.</blockquote>
Yup, just increase your exemptions and make sure that you will owe taxes even after applying the credit.</blockquote>
Be careful. If you owe too much, you will be lible for penalties and interest.
[quote author="awgee" date=1233031269][quote author="WINEX" date=1233015641]Then choose to apply your refund to your 2009 state income taxes and reduce your state withholding taxes (or underpay your quarterlies) to offset the refund you are due.
There's more than one way to skin a cat.</blockquote>
Not bad. Thanks.</blockquote>
No problem at all. The idea wasn't mine, but thought I would share it after I heard about it. If enough people don't want to give the state an interest free loan (on top of the interest free loan that resulted in them getting refunds in the first place), the fiscal situation here could get interesting.
There's more than one way to skin a cat.</blockquote>
Not bad. Thanks.</blockquote>
No problem at all. The idea wasn't mine, but thought I would share it after I heard about it. If enough people don't want to give the state an interest free loan (on top of the interest free loan that resulted in them getting refunds in the first place), the fiscal situation here could get interesting.
usctrojanman29_IHB
New member
[quote author="awgee" date=1233031309][quote author="usctrojanman29" date=1233019228][quote author="WINEX" date=1233015641]Then choose to apply your refund to your 2009 state income taxes and reduce your state withholding taxes (or underpay your quarterlies) to offset the refund you are due.
There's more than one way to skin a cat.</blockquote>
Yup, just increase your exemptions and make sure that you will owe taxes even after applying the credit.</blockquote>
Be careful. If you owe too much, you will be lible for penalties and interest.</blockquote>
Of course, you can't owe too much. Does the state also have the "safe harbor" rule for withholdings like the IRS has?
There's more than one way to skin a cat.</blockquote>
Yup, just increase your exemptions and make sure that you will owe taxes even after applying the credit.</blockquote>
Be careful. If you owe too much, you will be lible for penalties and interest.</blockquote>
Of course, you can't owe too much. Does the state also have the "safe harbor" rule for withholdings like the IRS has?
awgee_IHB
New member
[quote author="usctrojanman29" date=1233032428][quote author="awgee" date=1233031309][quote author="usctrojanman29" date=1233019228][quote author="WINEX" date=1233015641]Then choose to apply your refund to your 2009 state income taxes and reduce your state withholding taxes (or underpay your quarterlies) to offset the refund you are due.
There's more than one way to skin a cat.</blockquote>
Yup, just increase your exemptions and make sure that you will owe taxes even after applying the credit.</blockquote>
Be careful. If you owe too much, you will be lible for penalties and interest.</blockquote>
Of course, you can't owe too much. Does the state also have the "safe harbor" rule for withholdings like the IRS has?</blockquote>
Sorry, I do not know what you mean by <em>"safe harbor" rule for withholdings like the IRS has"</em>.
There's more than one way to skin a cat.</blockquote>
Yup, just increase your exemptions and make sure that you will owe taxes even after applying the credit.</blockquote>
Be careful. If you owe too much, you will be lible for penalties and interest.</blockquote>
Of course, you can't owe too much. Does the state also have the "safe harbor" rule for withholdings like the IRS has?</blockquote>
Sorry, I do not know what you mean by <em>"safe harbor" rule for withholdings like the IRS has"</em>.
usctrojanman29_IHB
New member
[quote author="awgee" date=1233033184][quote author="usctrojanman29" date=1233032428][quote author="awgee" date=1233031309][quote author="usctrojanman29" date=1233019228][quote author="WINEX" date=1233015641]Then choose to apply your refund to your 2009 state income taxes and reduce your state withholding taxes (or underpay your quarterlies) to offset the refund you are due.
There's more than one way to skin a cat.</blockquote>
Yup, just increase your exemptions and make sure that you will owe taxes even after applying the credit.</blockquote>
Be careful. If you owe too much, you will be lible for penalties and interest.</blockquote>
Of course, you can't owe too much. Does the state also have the "safe harbor" rule for withholdings like the IRS has?</blockquote>
Sorry, I do not know what you mean by <em>"safe harbor" rule for withholdings like the IRS has"</em>.</blockquote>
Where as long as you withhold the lesser of 100% of prior year's tax liability or 90% of the current year tax liability but not to be greater than $1,000...you will not be fined for not withholding enough federal taxes from your paycheck (learned this in my tax class back in my undergrad days).
There's more than one way to skin a cat.</blockquote>
Yup, just increase your exemptions and make sure that you will owe taxes even after applying the credit.</blockquote>
Be careful. If you owe too much, you will be lible for penalties and interest.</blockquote>
Of course, you can't owe too much. Does the state also have the "safe harbor" rule for withholdings like the IRS has?</blockquote>
Sorry, I do not know what you mean by <em>"safe harbor" rule for withholdings like the IRS has"</em>.</blockquote>
Where as long as you withhold the lesser of 100% of prior year's tax liability or 90% of the current year tax liability but not to be greater than $1,000...you will not be fined for not withholding enough federal taxes from your paycheck (learned this in my tax class back in my undergrad days).
ipoplaya_IHB
New member
[quote author="usctrojanman29" date=1233039298]
Where as long as you withhold the lesser of 100% of prior year's tax liability or 90% of the current year tax liability but not to be greater than $1,000...you will not be fined for not withholding enough federal taxes from your paycheck (learned this in my tax class back in my undergrad days).</blockquote>
Uh, that is not entirely correct.
The safe harbor provision with regards to avoiding underpayment penalties for high income filers (over $75K AGI for single and married filing sep and over $150K for married filing jointly) is 110%, not 100%, I believe...
And if you are a farmer or fisherman, the figure isn't 90%, it's 66.66%.
CA uses similar "safe harbor" provisions... <a href="http://www.ftb.ca.gov/forms/2008/08_540esins.pdf">See 540-ES instructions </a>for details.
Where as long as you withhold the lesser of 100% of prior year's tax liability or 90% of the current year tax liability but not to be greater than $1,000...you will not be fined for not withholding enough federal taxes from your paycheck (learned this in my tax class back in my undergrad days).</blockquote>
Uh, that is not entirely correct.
The safe harbor provision with regards to avoiding underpayment penalties for high income filers (over $75K AGI for single and married filing sep and over $150K for married filing jointly) is 110%, not 100%, I believe...
And if you are a farmer or fisherman, the figure isn't 90%, it's 66.66%.
CA uses similar "safe harbor" provisions... <a href="http://www.ftb.ca.gov/forms/2008/08_540esins.pdf">See 540-ES instructions </a>for details.
ipoplaya_IHB
New member
[quote author="awgee" date=1233057673]Ipo is correct and I have no idea how he knows this minutiae. It is kinda freaky.
I had not heard that particular portion of code referred to as safe harbor. I think of safe harbor as the third party who holds the funds from a potential 1031.</blockquote>
I read publication 505 before I go to bed each night
I'd become an EA if they got to carry a gun and badge!
I had not heard that particular portion of code referred to as safe harbor. I think of safe harbor as the third party who holds the funds from a potential 1031.</blockquote>
I read publication 505 before I go to bed each night
I'd become an EA if they got to carry a gun and badge!
movingaround_IHB
New member
Coming late to the conversation but I am reading this right that since we are over 150K we must pay in 110% of what we will owe during the year??? We are ending up with a tax refund from CA and trying to decide whether to apply it to 2009?
biscuitninja_IHB
New member
Is there an upper limit to a refund? I don't want to be putting in something like 10k into CA system to be burdened with becomming a collections agent....
Bastards.
-bix
Bastards.
-bix