ARE YOU KIDDING ME?????????

[TulipsAndSunscreen]

Re: ARE YOU KIDDING ME?????????

Latest and greatest: not only do I owe because of my withholdings, it's not even just a straight % of my income. It's income and 401K withholdings. Um, I thought those were completely tax free? Hello?

I need to get the hell out of this state IMMEDIATELY.

It brings up an interesting point though for residency. Do you realize over your entire working life how much money you could save by living in a state without income tax or really low property taxes? That's actually a HUGE point I'd never thought of...

[SuzySunshine]

Re: ARE YOU KIDDING ME?????????

Wait, tax on your 401K or is it a contribution to your 401k that they forgot to take out? Because you're right if they're taxing your 401k contributions then there is an issue somewhere. I'd get clarification on that before I paid anything.

[MrsK]

Re: ARE YOU KIDDING ME?????????

Wait, tax on your 401K or is it a contribution to your 401k that they forgot to take out? Because you're right if they're taxing your 401k contributions then there is an issue somewhere. I'd get clarification on that before I paid anything.

Yeah, what she said.

Also, FL = No State Income Tax.

[poky]

Re: ARE YOU KIDDING ME?????????

Also Washington and Alaska. WA has big sales tax, though. Oregon has no sales tax, but does have state income tax. Alaska has neither. There is property tax there, but I assume their annual resident's kickback covers that for most people.

[TulipsAndSunscreen]

Re: ARE YOU KIDDING ME?????????

Tax on the contribution to my 401K which I thought was tax exempt!!!!!

Re: ARE YOU KIDDING ME?????????

I believe the contribution to 401K is supposed to be pre-tax dollars. The money is taxed AND penalized if you take it out early.

http://www.smartmoney.com/personal-fina ... ions-7929/

That accounting place your company is using SUCKS, and you need to raise holy hell. That is most definitely NOT an Ohio thing.

[poky]

Re: ARE YOU KIDDING ME?????????

I think they're doing ROTH 401(k)s now, though..so maybe you're signed up for a post-tax one and didn't realize it?

[SuzySunshine]

Re: ARE YOU KIDDING ME?????????

What Jenn said - even if you're the only employee this is happening to your company needs to be raising holy hell.

[TulipsAndSunscreen]

Re: ARE YOU KIDDING ME?????????

Haha, yeah right, our finance guy isn't doing anything. Apparently now the accounting firm is claiming that we can't prove that someone from my firm didn't go in and change my online profile to say I didn't have any local income. Our finance guy is like, "Um, WHY would I have done that." But basically they're refusing to be on the hook for anything.

So, if I owe penalties for non-payment, it's on me or my firm. Given that they're already paying extra for me to work in Ohio, guess who's likely on the hook?

I'm just PRAYING there are no penalties.

As of this morning, we have no gym, no extra TV box, insurance deductibles are now up very high and we're eating everything in our pantry before we step into a grocery store. Hopefully that'll save us enough to be able to make up for the new withholdings. I'm looking into a loan from my credit card for the big payment.

We'll survive, other people have it much worse I know. It's just a little disheartening. Especially since I couldn't have done anything to prevent this. It just makes you feel like this could happen to anyone at any time. We have lots to be thankful for (new kitchen on Friday - kinda wish I could take that one back) so that's my new attitude.

Re: ARE YOU KIDDING ME?????????

You shouldn't have any penalties until April 15th. If you pay it before then you should be okay.

[MrsK]

Re: ARE YOU KIDDING ME?????????

Tulips, I was talking with my brother tonight regarding taxes. He's a self-employed family practitioner so he owes $$$ for taxes. He was very insistant that working out an installment plan with the IRS is the way to go. Yes, there will be penalties and fees but it will be less than the credit card interest. He says that if you owe more than $25k, you can even set up your installment plan on-line and that it is relatively painless.

Re: ARE YOU KIDDING ME?????????

http://www.irs.gov/businesses/small/art ... 42,00.html

This is where I got my info. If you're able to secure a 0% or low-interest rate on a credit card, then there is no way you'll end up paying more than the IRS penalties and fees. Remember, if you're paying by 4/15, you're not incurring any penalties from the IRS - they have their money and do not care. You'll only have the expense on the credit card - and paying off $1500 over 6 months or so isn't terribly unreasonable.

[moonlight]

Re: ARE YOU KIDDING ME?????????

Also Washington and Alaska. WA has big sales tax, though. Oregon has no sales tax, but does have state income tax. Alaska has neither. There is property tax there, but I assume their annual resident's kickback covers that for most people.

What is the sales tax in WA?

[moonlight]

Re: ARE YOU KIDDING ME?????????

It brings up an interesting point though for residency. Do you realize over your entire working life how much money you could save by living in a state without income tax or really low property taxes? YES! That's actually a HUGE point I'd never thought of... This is a big reason we are happy to return to Texas post residency training! Once anyone lives in one of those rare state-income-tax-free states, then you NEVER want to live anywhere else. On the other hand I don't know how much longer Texas can go without collecting income taxes. The state is at bare bones with state services.