Comments on: New Tax Forms and Schedules for 2009 Tax Year http://thefinancebuff.com/new-tax-forms-and-schedules-for-2009-tax-year.html like a friend telling you about money ... Fri, 10 Feb 2012 17:31:35 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: TFB http://thefinancebuff.com/new-tax-forms-and-schedules-for-2009-tax-year.html#comment-3430 TFB Wed, 10 Feb 2010 23:28:57 +0000 http://thefinancebuff.com/2010/02/new-tax-forms-and-schedules-for-2009-tax-year.html#comment-3430 Random Poster - Thank you for telling me about the false warning. I filled out a form to ask Microsoft to correct it. As to the quiz question, I would give the best explanation to Chuck. Withholding has nothing to do with taxes owed. I can artificially change my withholding and get a bigger paycheck. That's not a tax cut. Doing so only makes me owe more taxes and interest and penalty at tax filing time. "so don't even think about [withholding]" is exactly right. Random Poster – Thank you for telling me about the false warning. I filled out a form to ask Microsoft to correct it.

As to the quiz question, I would give the best explanation to Chuck. Withholding has nothing to do with taxes owed. I can artificially change my withholding and get a bigger paycheck. That’s not a tax cut. Doing so only makes me owe more taxes and interest and penalty at tax filing time. “so don’t even think about [withholding]” is exactly right.

]]> By: Random Poster http://thefinancebuff.com/new-tax-forms-and-schedules-for-2009-tax-year.html#comment-3429 Random Poster Wed, 10 Feb 2010 22:47:45 +0000 http://thefinancebuff.com/2010/02/new-tax-forms-and-schedules-for-2009-tax-year.html#comment-3429 Off topic, but this is the first time that I've visited this website and received a "Suspicious Website" alert from Microsoft, claiming that this may be a "Phishing Website." I'm running Vista, if it matters. On topic, a taxpayer has to file out a Schedule M because the goverment doesn't want to make filing one's taxes easy. Probably not the answer that you are looking for... Off topic, but this is the first time that I’ve visited this website and received a “Suspicious Website” alert from Microsoft, claiming that this may be a “Phishing Website.” I’m running Vista, if it matters.

On topic, a taxpayer has to file out a Schedule M because the goverment doesn’t want to make filing one’s taxes easy. Probably not the answer that you are looking for…

]]> By: KD http://thefinancebuff.com/new-tax-forms-and-schedules-for-2009-tax-year.html#comment-3428 KD Wed, 10 Feb 2010 22:47:34 +0000 http://thefinancebuff.com/2010/02/new-tax-forms-and-schedules-for-2009-tax-year.html#comment-3428 To answer TFB's question from comment # 4: Reducing your withholding by itself does not give you the tax credit. The Schedule M does. So yes, everybody , who qualifies for the tax credit, will have to file Schedule M to actually get the credit in the tax forms. This is a peculiar case as the tax credit was disbursed first by lower withholding even before filing for a tax credit. But since it is a one time event and not everybody qualifies, it is not accounted for in the tax tables of IRS. So the tax due is actually $400 more. Now add in Schedule M saying you want the credit and that $400 tax goes away. Some folks have multiple jobs and got the credit mutliple times. So they now have to pony up money to the IRS because too little of their income was withheld. To answer TFB’s question from comment # 4: Reducing your withholding by itself does not give you the tax credit. The Schedule M does. So yes, everybody , who qualifies for the tax credit, will have to file Schedule M to actually get the credit in the tax forms. This is a peculiar case as the tax credit was disbursed first by lower withholding even before filing for a tax credit. But since it is a one time event and not everybody qualifies, it is not accounted for in the tax tables of IRS. So the tax due is actually $400 more. Now add in Schedule M saying you want the credit and that $400 tax goes away. Some folks have multiple jobs and got the credit mutliple times. So they now have to pony up money to the IRS because too little of their income was withheld.

]]> By: Pelon http://thefinancebuff.com/new-tax-forms-and-schedules-for-2009-tax-year.html#comment-3426 Pelon Wed, 10 Feb 2010 21:43:06 +0000 http://thefinancebuff.com/2010/02/new-tax-forms-and-schedules-for-2009-tax-year.html#comment-3426 "If a person's withholding is reduced by exactly $400 and this person qualifies for exactly $400 credit, does this person still have to file Schedule M?" No, they can choose to pay an additional $400 in tax instead. :) “If a person’s withholding is reduced by exactly $400 and this person qualifies for exactly $400 credit, does this person still have to file Schedule M?”

No, they can choose to pay an additional $400 in tax instead. :)

]]> By: Dan http://thefinancebuff.com/new-tax-forms-and-schedules-for-2009-tax-year.html#comment-3423 Dan Wed, 10 Feb 2010 17:01:16 +0000 http://thefinancebuff.com/2010/02/new-tax-forms-and-schedules-for-2009-tax-year.html#comment-3423 All other things being equal, if the withholding hadn't been reduced, the refund would be larger, but that wouldn't ahve been a 2009 stimulus (having more money to spend) but a 2010 one instead (larger refund). If you don't file the Schedule - then you don't receive the credit. All other things being equal, if the withholding hadn’t been reduced, the refund would be larger, but that wouldn’t ahve been a 2009 stimulus (having more money to spend) but a 2010 one instead (larger refund). If you don’t file the Schedule – then you don’t receive the credit.

]]> By: Chuck http://thefinancebuff.com/new-tax-forms-and-schedules-for-2009-tax-year.html#comment-3422 Chuck Wed, 10 Feb 2010 16:39:24 +0000 http://thefinancebuff.com/2010/02/new-tax-forms-and-schedules-for-2009-tax-year.html#comment-3422 It was not my answer, but RDT2 has the most convincing one for me: "... the form's instructions tell you to." My answer was going to be that withholding is not a factor in tax owed at all, so don't even think about it. It was not my answer, but RDT2 has the most convincing one for me: “… the form’s instructions tell you to.”

My answer was going to be that withholding is not a factor in tax owed at all, so don’t even think about it.

]]> By: TFB http://thefinancebuff.com/new-tax-forms-and-schedules-for-2009-tax-year.html#comment-3421 TFB Wed, 10 Feb 2010 16:28:48 +0000 http://thefinancebuff.com/2010/02/new-tax-forms-and-schedules-for-2009-tax-year.html#comment-3421 Chuck - The answer itself may be easy, but I'm looking for the most convincing explanation. Pelon - If a person's withholding is reduced by exactly $400 and this person qualifies for exactly $400 credit, does this person still have to file Schedule M? Chuck – The answer itself may be easy, but I’m looking for the most convincing explanation.

Pelon – If a person’s withholding is reduced by exactly $400 and this person qualifies for exactly $400 credit, does this person still have to file Schedule M?

]]> By: RDT2 http://thefinancebuff.com/new-tax-forms-and-schedules-for-2009-tax-year.html#comment-3420 RDT2 Wed, 10 Feb 2010 16:13:52 +0000 http://thefinancebuff.com/2010/02/new-tax-forms-and-schedules-for-2009-tax-year.html#comment-3420 Your withholdings were reduced under the assumption that you would file this schedule so its not double dipping. And the form's instructions tell you to. Your withholdings were reduced under the assumption that you would file this schedule so its not double dipping. And the form’s instructions tell you to.

]]> By: Pelon http://thefinancebuff.com/new-tax-forms-and-schedules-for-2009-tax-year.html#comment-3419 Pelon Wed, 10 Feb 2010 16:13:00 +0000 http://thefinancebuff.com/2010/02/new-tax-forms-and-schedules-for-2009-tax-year.html#comment-3419 I'm going to wing the answer to the quiz since I don't have time to go through all the forms: Claiming the credit on the Schedule M is not double-dipping since the amount of money withheld from a paycheck is only an estimate of the amount of tax due based on your salary and requested exemptions. Filing the Schedule M is what actually demonstrates to the IRS that you owe a lower amount of tax. I’m going to wing the answer to the quiz since I don’t have time to go through all the forms:

Claiming the credit on the Schedule M is not double-dipping since the amount of money withheld from a paycheck is only an estimate of the amount of tax due based on your salary and requested exemptions. Filing the Schedule M is what actually demonstrates to the IRS that you owe a lower amount of tax.

]]> By: Chuck http://thefinancebuff.com/new-tax-forms-and-schedules-for-2009-tax-year.html#comment-3418 Chuck Wed, 10 Feb 2010 15:48:17 +0000 http://thefinancebuff.com/2010/02/new-tax-forms-and-schedules-for-2009-tax-year.html#comment-3418 The answer to the question in the last paragraph is so easy, I'll just wait and see if someone answers it. :) The answer to the question in the last paragraph is so easy, I’ll just wait and see if someone answers it. :)

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