Hi I have lost my job this year, and i think might I need to pay more taxes next year when i file my tax return. is there anyway i can waive the federal tax owe?

[khurramch079]

Hi Opus

Taxes are withholding from my paychecks

how i can pay the penalty before filing the taxes?

i don’t know about it

and what is this $22000, i have to pay $20000 extra??

please let me know

[Opus 17]

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@khurramch079 wrote:

Hi Opus

Taxes are withholding from my paychecks

how i can pay the penalty before filing the taxes?

i don’t know about it

and what is this $22000, i have to pay $20000 extra??

please let me know

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I'm going by your figures.  You said you had $11,666 withheld, and you expect to owe $9,555.  That means your total tax liability to the government will be $21,221. 

(Your tax liability is what you actually owe in taxes to the government overall.  If you have $10,000 withholding and get a $2000 refund, your tax liability was $8000.  Likewise, if you have $7000 in withholding and owe $1000 extra when you file your return, your tax liability is $8,000.)

If you expect your tax liability for 2021 to be $21,221, then to avoid a penalty, you must pay at least $19,291 into the tax system.  If you did not have enough withholding taken out of your pay checks, you can make an electronic tax payment online at www.irs.gov/payments.  Be sure to choose "2021 estimated taxes" from the menu.  If your withholding was $11,666, then your estimated payment would have to be at least $7,625.  If you make the estimated payment, you get credit on your tax return, and if you over-paid the estimate, you get the difference back as a refund.  If you did not pay enough, you will need to send an additional payment with your tax return.

[khurramch079]

Hi Opus

but I already paid $11666 as taxes withheld from my paycheck:

why i have to pay again $11666???

[VolvoGirl]

You don't.   That's just how you report it on your tax return.   First, Your total tax is calculated on your income.  Then the withholding is subtracted giving you a tax due or refund.  You have to start with the total tax on income.  

If you have withholding of 11,666 and owe another 9,000 on your tax return then the total tax on all your income must have been 20,666.      You needed to have 18,600 withholding to cover 90% of the total tax to avoid a penalty.  (20,666 x .90 = 18,600)

[Opus 17]

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@khurramch079 wrote:

Hi Opus

but I already paid $11666 as taxes withheld from my paycheck:

why i have to pay again $11666???

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I didn't say that, read it again.

Your withholding is only an estimate of what you will owe.  The IRS collects withholding so the government gets paid during the whole year instead of only at tax time.  The actual tax you owe is calculated on your tax return.  If your withholding is more than you owe, you get a refund.  If you owe more than you already paid from withholding, then you have to make an additional payment.  If you owe too much (because you did not have enough withheld) then you can also be assessed a penalty.

[khurramch079]

Hi

i still don’t understand 

already $11666 withheld from my paychecks

and what i owe is around $9955

i can pay $9955 using payment plan

so what more i had to pay other than this??

[Opus 17]

@khurramch079 

I don’t believe you are reading my responses carefully. You certainly do not seem to understand them. You may want to seek help from a local tax professional.

Right now, the $9955 is only an estimate. The amount of tax that you will actually owe will not be officially determined until you prepare and file your tax return, sometime between January 30 and April 15, 2022.  It might be more or less than your current estimate.

If you owe more than $1000 when you file your tax return in 2022, you will probably be assessed a penalty. If you can afford to make extra tax payments now, that will reduce the amount that you owe and may stop you from owing a penalty.  You can make extra tax payments at www.irs.gov/payments. Be sure to choose “2021 estimated taxes“ from the pulldown menu. 

[khurramch079]

Hi Opus

Thank you so much for all the information

[khurramch079]

Hi All

lets suppose I owe IRS $10,000 tax year 2022, when I file First penalty abatment, will I get refunded for that amount or what?

kindly let me know

[fanfare]

@khurramch079 

If your estimate of tax is below what is withheld already (assuming you don't work further in 2021) -- and is acccurate -- then you will get a refund.

Generally there is still a possibility of a penalty for under-withholding. But it will probably not apply in your case.

[khurramch079]

Hi

i am asking about if I get penalty then i file first penalty abatment, as i am working rest of the year, suppose i owe IRS $10000 in taxes for this year, will i get refunded once i file the first penalty abatement??

kindly let me know

thanks

[fanfare]

IRS will decide whether or not to grant an abatement of penalty.

I don't know why you're so worried about this.

[khurramch079]

But this would be my first penalty 

I haven’t any penalties from past 3 years

[khurramch079]

I am worried because I have lost my jobs, and i can’t pay federal taxes owe

Taxes already withheld from my paychecks around $11666

[Opus 17]

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@khurramch079 wrote:

Hi All

lets suppose I owe IRS $10,000 tax year 2022, when I file First penalty abatment, will I get refunded for that amount or what?

kindly let me know

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Your questions are so all over the place it is hard to give an answer.

If you owe $10,000 and can't afford to pay, make a partial payment and request a payment plan for the rest.  The IRS will automatically add the penalty and interest to the payment plan.  If you then request an abatement which is granted, the IRS will adjust the number of payments remaining on your payment plan.

If you owe $10,000 and pay in full when you file your return, and you let Turbotax calculate a penalty that you include with your payment, you can then request an abatement.  If granted, the IRS will send a refund.

If you owe $10,000 and pay in full when you file, and you only pay the tax and not the penalty, the IRS will send a bill for the penalty and interest.  Apply for the abatement and don't pay the bill.  If the abatement is granted, the IRS will send a revised bill for the interest only that removes the penalty.