General Discussion
In reply to the discussion: I'm a CPA with a small tax practice [View all]Indykatie
(3,695 posts)I usually take the extension route (filing due in Oct) but I send in an additional payment on 4/15 if my rough estimate shows I'm going to owe quite a bit more. In the past that has meant me owing several thousand more than what was withheld during the year. There is a penalty if you have paid in less than a certain % of your tax liability though I have read the IRS is adjusting that penalty threshold this year. Too late now but there are a number of calculators out there that allow folks to estimate their tax liability under the new rules. The one I used is https://www.nerdwallet.com/taxes/tax-calculator . Their estimate w/h been spot on had I remembered I had to pay taxes on the $3200 that my Employer paid for life insurance in excess of $50K. When I used it though I didn't believe it b/c it indicated I'd be getting a large (for me) refund.
My Personal Tax Story
I am an example of why this "tax cut" was misguided. Instead of paying an additional $2,000 - $3,000 as in past years, I'm getting a $3400 refund after also getting an additional $200 a month increase on my check during the year. I started having the extra $200 withheld for additional Federal taxes in March which was an additional $2000 paid in. I'm a HOH with 1 college age dependent and was still able to itemize b/c of high charitable donations even though I maxed out at $10K for SALT in INDIANA. You don't have to live in CA, NY or NJ to be impacted by the new SALT limit. Dems better raise hell and run on getting Trump's "tax cut" reversed as a major platform issue for 2020. This is definitely NOT the lower or middle income tax cut people need.