Just wanna know for the future...
2006-06-18 13:29:24 · 14 answers · asked by dr_salvadore@verizon.net 2 in Business & Finance ➔ Taxes ➔ United States
Any taxes...
2006-06-18 13:57:09 · update #1
If you are on a salary, your employer will withhold taxes from your paycheck. This is actually you paying taxes. When you file your tax return, you are reconciling the amount of taxes you have paid against the actual amount owed. If not enough was withheld, you will owe taxes. If too much is owed, you may also owe interest and penalties, so you want to make sure your withholding are reasonable so that you basically cover all your taxes owed. If you have paid too much, you get a refund, but getting a large refund doesn't mean you have hit the lottery. It means you have been having too much withheld from your check and you have made an interest-free loan to the government. Your goal should be to get back or owe no more than about $100. When you start a job, you have to fill out federal and state tax withholding forms, which explain how to calculate a reasonable number of exemptions. You can also change these at any time, if your circumstances change, like you take a second job, you get married, you have a child, etc. If you don't know what you are doing, ask a tax professional to help you figure it out.
Now, as for when to file your taxes. Do your tax return as soon as you get all the information you need (W2s, 1099s, etc.). If you are getting a refund, file right away. If you owe (but not enough to owe a penalty) wait and file close to April 15. If you owe with a penalty, pay as soon as possible, since the interest will keep accruing.
Hope that helps.
2006-06-18 13:44:54 · answer #1 · answered by just♪wondering 7 · 0⤊ 0⤋
In general, if you are going to OWE taxes, get it postmarked (mail it) on the last possible day which is normally April 15. That way, they dont take your money until a few days after April 15. Paying early gets you nothing unless you are required to pay estimated taxes (usually only if you are not an employee and have nothing deducted from your paycheck). If you are a business owner you may have to pay estimated quarterly taxes throughout the tax year. Speaking of deducted from your paycheck--if you do this and have been getting a big refund every April, you may want to decrease the amount they withhold each paycheck. You are essentially giving Uncle Sam an intrest-free loan from the time of deduction to the following April. Better to keep that money (making your paycheck bigger) and earn interest on it yourself. Just dont under-withhold or you will be hit with penalties at a certain point. The optimal amount of refund/amount due on April 15 is $0.00 so the closest you can get to that the better. Note that many factors will contribute to how much you should withold. Seek Professional Tax Help for help with your specific situation.
2006-06-18 20:38:46 · answer #2 · answered by Ohmster 1 · 0⤊ 0⤋
You should complete all the tax forms and be ready to file as soon as you can.
If you are expecting a refund, you should file taxes as soon as possible (generally, unless you keep exceptional records of any taxable transactions, that time would be beginning of February, because all the tax-related forms you may need must be sent to you by January 31 (so give a few days to receive the last ones). If you keep good records and know all the amounts, you can file in January (I don't know for sure, but it might just be January 1st or 2nd).
If you owe less than $1000 in federal taxes, you should wait as long as possible (usually April 15, but in 2006 it was April 17 if you mailed them from USPS).
If you owe more than $1000 in federal taxes, then you may end up paying a penalty. To avoid this, you should file estimated taxes quarterly. The deadlines for these are the 15th of April, June, September, and January for the preceeding quarter.
I don't know about the amounts owed in state taxes to avoid penalty. You should look it up, it's likely available online.
The reason you should wait until the deadline is because you can earn interest on this money up until the deadline. We're talking pennies on the dollar here, but if you apply this idea to everything you do, it may work out to a substantial amount of interest income. A penny saved.
2006-06-18 22:08:50 · answer #3 · answered by teehee 3 · 0⤊ 0⤋
Before April 15th.
But the earlier you do it in the year the faster they come back. And the less waiting in lines you have to do if you have a company do them.
I always try to do mine no later than the beginning of February. Just as long as I have gotten all my checks from the year before already.
2006-06-18 20:33:18 · answer #4 · answered by foolnomore2games 6 · 0⤊ 0⤋
YOU SHOULD PAY YOUR TAXES AS EARLY AS POSSIBLE OR IF NOT WORK OUT A PAYMENT PLAN IN ADVANCE WITH THE IRS THIS WILL PREVENT PENALTIES , LATE FEES, ASSETS BEING FROZEN.... AS SOON AS YOU GET YOUR W2 FILE TAXES BE HONEST WHEN EXPLAINING HOW MUCH YOU CAN AFFORD TO PAY EACH MONTH.... IT WILL WORK OUT GOOD LUCK
2006-06-18 20:34:46 · answer #5 · answered by rawdawgsgo_hard2005 4 · 0⤊ 0⤋
As soon as possible if you're expecting a refund. Otherwise get them in by April 15th.
2006-06-18 20:35:05 · answer #6 · answered by jamesflinchbaugh 2 · 0⤊ 0⤋
Before April of each year..I believe
2006-06-18 20:32:49 · answer #7 · answered by Benz 4 · 0⤊ 0⤋
If you owe money then you pay the day before they are due, if you are due a refund you send the return in as soon as you can.
2006-06-18 20:34:14 · answer #8 · answered by smgray99 7 · 0⤊ 0⤋
Every year ,before april 15th.
2006-06-18 23:36:07 · answer #9 · answered by browneyez_sv 1 · 0⤊ 0⤋
Febuary or March.
2006-06-18 22:40:16 · answer #10 · answered by Jon N 2 · 0⤊ 0⤋