Start estimating your taxes during the year so changes like
AMT are not a surprise. I recommend an estimate in July
(just double everything on your final June statements) and
one in December. You may have to each quarter if your
withholded taxes are chronically short.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

SMF wrote:

- quote -

What's your tax bracket?

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

SMF wrote:

- quote -

What's your tax bracket?

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"SMF" <smfwdf[at]comcast.net> wrote:

- quote -

Contact a competent CPA, financial planner, wealth
management firm or tax & estate planning attorney in your
area. Sit with them and do a detailed discussion of your
current state and desired future financial goals. There are
many options but only a comprehensive analysis of your facts
will produce a strategic financial plan for you. Remember,
taxes are but just one element (albiet a significan one) of
a comprehensive financial plan which is what it sounds like
you're looking for.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

SMF wrote:

- quote -

More details are needed. Your income must be rather high
(and your itemized deductions more than "limited") if you
have only wage income and are paying AMT.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

SMF wrote:

- quote -

Yes. Take steps now to either increase your withholding at
work, and/or send in estimated quarterly taxes so that next
April 15th you will just about break even. Or at least owe
no more than $1,000 to avoid any underpayment penalty.

ChEAr$,
Harlan Lunsford, EA n LA
also "pounded."

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"SMF" <smfwdf[at]comcast.net> wrote:

- quote -

One hates to be blunt, but you have two choices:

1. Make less money

2. Count your blessings

There are lots of people who don't pay income tax at all.
If you'd like to join them hang out at the local welfare
office, and I'm sure you could pick up some pointers.

There's no legal way to reduce your taxes without winding up
with less in your pocket after the dust settles. You can
pay mortgage interest, but since the tax rate doesn't come
anywhere near 100%, you'll wind up with less in your pocket,
even after the tax inducement. You can invest in losing
investments, but the same bottom line. You can procreate,
but don't do it just to save money on taxes. There's a
*really* bad bottom-line difference there.

In short, there's no way to prosper without paying taxes.
Don't let your distaste for taxes, which is perfectly
understandable, cloud your judgment so that you do something
really stupid, like paying attention to the scams you see on
the Internet.

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

We're getting pounded in Federal taxes. We only have wages,
we max our 401-K's, our schedule A is limited, as are our
exemptions, and we have to pay the AMT tax....ANy plan for
the future that will help us?

Thanks.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >