CA tax return

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biscuitninja_IHB

biscuitninja_IHB

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So we are getting about a 2100 state return (our federal is quite a bit larger). What is going to happen? We file and get and IOU from the state or we file and hold over to 2010?

Thoughts, concerns, ideas?
 
[quote author="biscuitninja" date=1234104984]So we are getting about a 2100 return. What is going to happen? We fire and get and IOU or we file and hold over to 2010?

Thoughts, concerns, ideas?</blockquote>
Apply the refund to this year's tax liability and decrease the amount you guys withhold from your paychecks this year so you'll use up that refund. Always try to plan to owe a little bit each other (takes a little tax planning).
 
I'm getting a tad over 3K back Federal and 300.00 back (uh, IOU'd) state. I claim zero. I have no idea what I should change my withholding to in order to get to a "near zero" return. A friend of mine claims 8 and is just about at break even...but I think that sounds too high for me. Any ideas ?
 
[quote author="Trooper" date=1234108530]I'm getting a tad over 3K back Federal and 300.00 back (uh, IOU'd) state. I claim zero. I have no idea what I should change my withholding to in order to get to a "near zero" return. A friend of mine claims 8 and is just about at break even...but I think that sounds too high for me. Any ideas ?</blockquote>
Increase the number of exemptions that you claim on your state to 3 or 4 and 2 to 3 for federal. If your income is fairly predictable along with your deductions, you should be able to calculate your estimated state tax liability for 2009.
 
I usually play with my W4 several times a year in trial and error to get the right # of exemptions. I've gone as high as 20 on the state to get where I needed to be. I just changed it to 8 recently after figuring out my '08 taxes and what'll be applied to '09. I always aim to get near zero back, but I'm conservative in my rough calcs, so I always end up getting a little back. Everything's online at work so changing it is easy.
 
Just do some trial and error with it. Take a look at your paycheck and see how much they are taking out per month for state tax. First try 2, then 3, then 4. Basically all you are looking for is to reduce the amount they take about by 25 bucks a month. Thats assuming your pay is pretty close to the same that it was last year.
 
I've never once been able to itemize at any point in my life. If you're an unmarried childless non-itemizer who makes roughly the Irvine median salary, two federal and one state will put you pretty close to where you need to be. As your income rises beyond that, you'll probably want to switch to one federal. Why the tax tables underwithold is beyond me; Two is the technically correct number per the W4 worksheet.
 
[quote author="effenheimer" date=1234159346] Why the tax tables underwithold is beyond me.</blockquote>


Isn't it obvious? The government likes getting interest free loans.



What's beyond me is how many people get excited about tax returns. Personally I don't like giving out interest free loans.
 
Nah, it's the other way around. If I follow all of the directions on the W4 and claim two exemptions, I'll end up <strong>owing</strong> money at the end of the year.



For 2007, I had to open a traditional IRA at the last minute and stick $700 in it just to avoid owning a penalty for being so far UNDERwitheld! Then I had to cut a check to Uncle Sam for many hundreds of dollars. It was easy for me but for someone living on the edge (TONS of people living like this yet making nearly $100k), it could seriously screw them up.
 
[quote author="WINEX" date=1234159607][quote author="effenheimer" date=1234159346] Why the tax tables underwithold is beyond me.</blockquote>


Isn't it obvious? The government likes getting interest free loans.



What's beyond me is how many people get excited about tax returns. <em>Personally I don't like giving out interest free loans.</em></blockquote>


but that interest free loan performed better than my 401(k) (-40%), IRA (-36%), and investment account (-20%). ;-P



Granted I would like to maximize my take home pay...
 
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