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Posted by James Lewis on May 25, 2007, 10:51 pm
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> I paid a large tax issue this year and am planning to file
> quarterly taxes in June. We are a two-earner family with
> similar salaries. Kids, mortgage, minor dividends, no
> capital gains, nothing fancy.
>
> Right now we are both withholding money via the w-4 at the
> single rate with zero exemptions which we did as of April.
>
> I did a back-of-the-envelope calculation that shows we will
> STILL owe money next year even at this single rate with no
> deductions. I plan to file quarterly taxes in June to make
> up this shortfall.
>
> Can someone explain if there was a change in the withholding
> law that would cause this? I asked coworkers about this and
> everyone grumbled about tax problems this year.
>
> If anyone can point me to a news article or technical piece
> about this, I would be most grateful.
With no more info, my guess is you are paying AMT tax. Give
us some real salary amounts/exemptions/etc. At any rate,
consider asking your employer to withhold a fixed amount
above the computed withholding in lieu of paying an
estimate. The advantage is that W-2 wihholding is considered
withheld evenly over the year but the estimates are
literally counted when made. Besides, it's easier to budget
by paycheck than by quarter....at least for me.
Mike
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