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Author: JohnEBgood Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121219  
Subject: Inadequate Witholding Date: 12/8/2007 4:24 PM
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Last year I got socked with penalties because one of my employers does not withold anything for Federal taxes.

I forgot to remedy the situation, and I wonder if it is too late. Can I either: 1)make a lump sum payment to the IRS before the end of the year, or 2)ask one of my employers to withold enough to prevent the penalty?

If both these options are open, which is preferable?

Thanks.

Jack
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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 97121 of 121219
Subject: Re: Inadequate Witholding Date: 12/8/2007 4:35 PM
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Last year I got socked with penalties because one of my employers does not withold anything for Federal taxes.

I forgot to remedy the situation, and I wonder if it is too late. Can I either: 1)make a lump sum payment to the IRS before the end of the year, or 2)ask one of my employers to withold enough to prevent the penalty?


Only the latter will relieve you of all penalty, since withholding credits are applied evenly throughout the year when determining whether you "paid as you went" as required. An estimated tax payment now will reduce, but no eliminate the penalty.

Looking forward to 2008, why doesn't the one employer withhold?

Phil

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Author: ziggy29 Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 97122 of 121219
Subject: Re: Inadequate Witholding Date: 12/8/2007 4:49 PM
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If you can get your employer to withhold enough to get you in safe harbor between now and the end of the year, that's probably the only "bullet proof" way to avoid penalties for underwithholding.

#29

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Author: vkg Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 97124 of 121219
Subject: Re: Inadequate Witholding Date: 12/8/2007 6:35 PM
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If your employer will withhold sufficiently, that would be the best option.

Since underwithholding penalty is based on the number of days taxes are underwithheld, making a sufficient estimated payment would stop the accural of penalties.

Debra

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Author: JohnEBgood Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 97135 of 121219
Subject: Re: Inadequate Witholding Date: 12/8/2007 11:30 PM
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Thank you all for your replies. They were very helpful.

Jack

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