Layout:
Home > I Can't Believe It! A Refund!!!

I Can't Believe It! A Refund!!!

February 5th, 2010 at 03:55 am

For the last six months or so, I've been sweating doing my 2009 taxes. From the calculations I'd made with the 2008 turbo tax, it sure looked like I was going to end up owing around $1500 due to Self-employment taxes. It really worried me how I was going to make my savings last for tuition AND paying the tax.

I was basing this off of making roughly $10k at the gym (plus the w-2 income from January/Feb). Today, though, I found out I'd made about $7500. And that right there made all the difference. Seriously.

First, I qualified for the Earned Income Tax Credit. That put me down to owing about $200. Then, I put in my education expenses. That brought me to a REFUND!!!! of ..... $62!!!

This puts me in a real conundrum as to how to do estimated taxes for 2010. I more than likely will make less than 12k for 2010, and will have a similar amount of an educational deduction. So ... with EITC and the education credit, I doubt I'll end up owing more than a few hundred dollars, if that. Maybe just go ahead and send in $300 a quarter, and then get it all back later (most likely)? Just to be safe? I probably need to talk to a small business tax person - I just hate to do that since *every penny* counts right now.

Ugh! I'd so much rather be getting W-2's than have to be messing with all of this kind of stuff.

5 Responses to “I Can't Believe It! A Refund!!!”

  1. monkeymama Says:
    1265342534

    Safe harbor - pay in 100% of what your taxes were last year (total tax minus any credits). There are no penalties, no matter how much you owe next year. I would just pay in the safe harbor and worry about the rest next year. Big Grin

  2. frugaltexan75 Says:
    1265342743

    That would be the 15.3% of the $7500 from the gym right? I wouldn't include the other income since it was w-2 income?

    I'd much rather be safe than sorry. Big Grin

  3. monkeymama Says:
    1265348014

    It would be your "total tax" on your tax return (line 60 on Form 1040) minus any credits. Probably "total tax" minus the EIC.

    It's 100% of your "Actual Taxes." Not 100% of what was withheld.

  4. Ima saver Says:
    1265379859

    if you are getting a refund this year, you don't have to pay in anything in estimated taxes.

  5. monkeymama Says:
    1265384940

    Um, not true. If you get a refund, it just means you paid in too much. & that's all it means. Doesn't mean you don't need to pay in anything the following year.

Leave a Reply

(Note: If you were logged in, we could automatically fill in these fields for you.)
*
Will not be published.
   

* Please spell out the number 4.  [ Why? ]

vB Code: You can use these tags: [b] [i] [u] [url] [email]