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Author: CTkaren Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121258  
Subject: Subject to back-up withholding question Date: 4/1/2008 4:51 PM
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I'm subject to back-up withholding as there a a few years in the 90's where I sent in money but never got the forms done. Usually the amount that gets withheld equals my tax liability, more or less, so although I will get it taken care of, it helps me out come April 15th.
For 2007 the amount withheld was low, so I decided to sell some stock in January ...of 2008.

I thought "How clever I am, it will be in by the time the Jan. 15 estimated tax is due".

Now I think I may have goofed--- does the IRS earmark that 28% withholding to be applied to the year I will get a 1099 for it, i.e. 2008?

I called the IRS and after a long conversation with 4 people, I got only the answer that they don't seem to know as they won't have information on 1099's until August.

I think I wasn't so clever and just lent the gov some extra money for a year! Does any one know if I can apply it to 2007 taxes?

Karen
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