I claimed "exempt" status by mistake so no fedral tax was held for 8 months. This was when i changed jobs. I plan to file and pay the dues by April 15th but can pay now if the penalty is time based.
2007-03-04 02:11:40 · 3 answers · asked by dabeervikas 2 in Business & Finance ➔ Taxes ➔ United States
With some additional possibilities that depend on your 2005 income and tax the general rule is that you will avoid the penalty if your tax owed is less than $1,000.
2007-03-04 02:48:32 · answer #1 · answered by ? 6 · 2⤊ 0⤋
There are about 40 days before the filing deadline. If you pay now, your penalty will be reduced about 1% of the underpayment.
The easiest way to handle this is to leave the penalty line blank and let the IRS figure the penalty for you.
So e-file now and your penalty if any will be less than if you wait until April 17.
2007-03-04 02:25:18 · answer #2 · answered by ninasgramma 7 · 2⤊ 0⤋
Making a mistake on your W-4 is no big thing. Your penalty will come when you file your taxes and you have not had enough money withheld. You will just have a larger tax bill on April 15.
The IRS loves those kind of mistakes. You end up paying them and they don't have to give back what you have paid in.
2007-03-04 02:21:06 · answer #3 · answered by Cotton 3 · 0⤊ 1⤋