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#9
03-25-2005, 05:07 AM
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 Re: These figures are not making sense to me--- advice please I don't think you will get a "waiver" for the $23 underpayment penalty. Have TT complete form 2210 Schedule AI and compute the penalty (which should be none) and attach it to your return when you file it. Mark the penalty line of 1040 "0". YOu have to do the AI to prove the unusual interest was in the 4th quarter and not in an earlier quarter. ed << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#8
03-24-2005, 04:08 AM
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| Re: These figures are not making sense to me--- advice please Never mind!!! I thought I was in the 15% tax bracket. I'm not. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#7
03-24-2005, 04:08 AM
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| Re: These figures are not making sense to me--- advice please "MB_" <mel[at]prodigy.invalid.net> writes: - quote - > Without the bond's interest, I would get a refund of $1943
You're missing that you're in the 25% tax bracket. The 25%> (pretty much due to the est. tax payment) on a taxable > income of say $58785. Now, the interest from the bond is > $8361.60, making my taxable income $67147. But now, > according to Turbo Tax, I suddenly OWE $155. In other words, > the additional income of $8361.60 resulted in an additional > tax of $2098. This is an increase of about 25% of the bond's > income. It doesn't seem like I should be in that high of a > bracket. > Am I missing something??? bracket starts at $29,700 of taxable income for those filing single, and $59,400 of taxable income for those filing married filing jointly. -- Rich Carreiro rlcarr[at]animato.arlington.ma.us << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#6
03-24-2005, 03:49 AM
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| Re: These figures are not making sense to me--- advice please - quote - > Without the bond's interest, I would get a refund of $1943
I don't know why you think "it doesn't seem like" you should> (pretty much due to the est. tax payment) on a taxable > income of say $58785. Now, the interest from the bond is > $8361.60, making my taxable income $67147. But now, > according to Turbo Tax, I suddenly OWE $155. In other words, > the additional income of $8361.60 resulted in an additional > tax of $2098. This is an increase of about 25% of the bond's > income. It doesn't seem like I should be in that high of a > bracket. be in the 25% tax bracket. If you are single with taxable income between $29,050 and $70,350, that is exactly the bracket you are in. Take a look at the tax rate schedules on page 76 of the IRS instructions for Form 1040. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#5
03-24-2005, 03:49 AM
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| Re: These figures are not making sense to me--- advice please "MB_" <mel[at]prodigy.invalid.net> wrote: - quote - > In December, 2004, I found out that there was a US Saving
$58k of taxable income before the interest is in the 25%> Bond (E) in my name that had reached final maturity (long > story --- not relevant here). So, to avoid any > underwithholding penalties, I sent in a 4th quarter > extimated tax payment of $2,000. > OK, I finally got the $$ for the bond. > I cannot understand the following: > Without the bond's interest, I would get a refund of $1943 > (pretty much due to the est. tax payment) on a taxable > income of say $58785. Now, the interest from the bond is > $8361.60, making my taxable income $67147. But now, > according to Turbo Tax, I suddenly OWE $155. In other words, > the additional income of $8361.60 resulted in an additional > tax of $2098. This is an increase of about 25% of the bond's > income. It doesn't seem like I should be in that high of a > bracket. > Am I missing something??? > (There is a $23. penalty for underpayment of estimated tax > but I am applying for a waiver of that penalty, so that's > not figured in here). (Incidentally, TT does the tax from > the combined dividend and capital gain worksheet in both > cases and there appears to be no AMT in either case) bracket. The calculation is correct. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#4
03-24-2005, 03:29 AM
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| Re: These figures are not making sense to me--- advice please MB_ wrote: - quote - > In December, 2004, I found out that there was a US Saving
Not a thing. In fact you did a pretty good job I think, in> Bond (E) in my name that had reached final maturity (long > story --- not relevant here). So, to avoid any > underwithholding penalties, I sent in a 4th quarter > extimated tax payment of $2,000. > OK, I finally got the $$ for the bond. > I cannot understand the following: > Without the bond's interest, I would get a refund of $1943 > (pretty much due to the est. tax payment) on a taxable > income of say $58785. Now, the interest from the bond is > $8361.60, making my taxable income $67147. But now, > according to Turbo Tax, I suddenly OWE $155. In other words, > the additional income of $8361.60 resulted in an additional > tax of $2098. This is an increase of about 25% of the bond's > income. It doesn't seem like I should be in that high of a > bracket. > Am I missing something??? estimating 2000$ more tax on the interest, when in fact the added tax was 2098. 98 $ difference isn't too shabby. ChEAr$, Harlan Lunsford, EA n LA << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#3
03-24-2005, 02:51 AM
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| Re: These figures are not making sense to me--- advice please MB_ wrote: - quote - > the interest from the bond is
The 25% bracket starts at taxable income of $29,050 for> $8361.60, making my taxable income $67147. But now, > according to Turbo Tax, I suddenly OWE $155. In other words, > the additional income of $8361.60 resulted in an additional > tax of $2098. This is an increase of about 25% of the bond's > income. It doesn't seem like I should be in that high of a > bracket. singles and $58,100 for MFJ in 2004. Phoebe  << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#2
03-24-2005, 02:32 AM
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| Re: These figures are not making sense to me--- advice please "MB_" <mel[at]prodigy.invalid.net> wrote: - quote - > In December, 2004, I found out that there was a US Saving
Based on the taxable income you provided, you are in the 25%> Bond (E) in my name that had reached final maturity (long > story --- not relevant here). So, to avoid any > underwithholding penalties, I sent in a 4th quarter > extimated tax payment of $2,000. > OK, I finally got the $$ for the bond. > I cannot understand the following: > Without the bond's interest, I would get a refund of $1943 > (pretty much due to the est. tax payment) on a taxable > income of say $58785. Now, the interest from the bond is > $8361.60, making my taxable income $67147. But now, > according to Turbo Tax, I suddenly OWE $155. In other words, > the additional income of $8361.60 resulted in an additional > tax of $2098. This is an increase of about 25% of the bond's > income. It doesn't seem like I should be in that high of a > bracket. > Am I missing something??? > (There is a $23. penalty for underpayment of estimated tax > but I am applying for a waiver of that penalty, so that's > not figured in here). (Incidentally, TT does the tax from > the combined dividend and capital gain worksheet in both > cases and there appears to be no AMT in either case) tax bracket. Wayne Brasch, CPA, M. S. Taxation << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
03-24-2005, 02:32 AM
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| Re: These figures are not making sense to me--- advice please - quote - > Without the bond's interest, I would get a refund of $1943
The 25% bracket starts at a taxable income of $29,000> (pretty much due to the est. tax payment) on a taxable > income of say $58785. Now, the interest from the bond is > $8361.60, making my taxable income $67147. But now, > according to Turbo Tax, I suddenly OWE $155. In other words, > the additional income of $8361.60 resulted in an additional > tax of $2098. This is an increase of about 25% of the bond's > income. It doesn't seem like I should be in that high of a > bracket. (single) or $58,000 (MFJ). -- Don EA in Upstate NY << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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03-24-2005, 02:13 AM
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| Re: These figures are not making sense to me--- advice please "MB_" <mel[at]prodigy.invalid.net> wrote: - quote - > In December, 2004, I found out that there was a US Saving
So write your Congressman. I assume you're Married, Filing> Bond (E) in my name that had reached final maturity (long > story --- not relevant here). So, to avoid any > underwithholding penalties, I sent in a 4th quarter > extimated tax payment of $2,000. > OK, I finally got the $$ for the bond. > I cannot understand the following: > Without the bond's interest, I would get a refund of $1943 > (pretty much due to the est. tax payment) on a taxable > income of say $58785. Now, the interest from the bond is > $8361.60, making my taxable income $67147. But now, > according to Turbo Tax, I suddenly OWE $155. In other words, > the additional income of $8361.60 resulted in an additional > tax of $2098. This is an increase of about 25% of the bond's > income. It doesn't seem like I should be in that high of a > bracket. Jointly. For 2005 the top of the 15% bracket is $59,400; it would be less for 2004. Without the bond interest you were right at the top of the 15% bracket, so additional income would be taxed at 25%. -- Phil Marti Clarksburg, MD << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
03-21-2005, 06:59 AM
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| These figures are not making sense to me--- advice please In December, 2004, I found out that there was a US Saving Bond (E) in my name that had reached final maturity (long story --- not relevant here). So, to avoid any underwithholding penalties, I sent in a 4th quarter extimated tax payment of $2,000. OK, I finally got the $$ for the bond. I cannot understand the following: Without the bond's interest, I would get a refund of $1943 (pretty much due to the est. tax payment) on a taxable income of say $58785. Now, the interest from the bond is $8361.60, making my taxable income $67147. But now, according to Turbo Tax, I suddenly OWE $155. In other words, the additional income of $8361.60 resulted in an additional tax of $2098. This is an increase of about 25% of the bond's income. It doesn't seem like I should be in that high of a bracket. Am I missing something??? (There is a $23. penalty for underpayment of estimated tax but I am applying for a waiver of that penalty, so that's not figured in here). (Incidentally, TT does the tax from the combined dividend and capital gain worksheet in both cases and there appears to be no AMT in either case) MB << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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| advice, figures, making, sense |
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