I just had my taxes done and I owe $1,550...:-(

[Lindsey]

$334 to the Feds.(boy, that Bush tax cut sure is helping me..) and 1,177 to the State of California. I will be able to pay the Feds by 4/15 but not the state (at least not the full amount). I'm single and don't own property so I'm so screwed. Does anyone (Californians) know how they work pmt. plans out! This is such a bummer!

[SoCalDem]

1. Boy..that REALLY sucks...

First thing you do is see your payroll dept and make sure they raise your state withholding.. You already have one quarter gone, and the taxes probably will go up before you file next year..

Just send what you can, along with a letter explaining that you do not have the money.. They will send you a letter with someone to call, and you can set up payments..

That seems like an awfully high amount to owe the state.. Did you check your math again??

Either you make a lot of money, or someone might have made a mistake..:(

[solinvictus]

2. Move!

If California's state tax is more of a burden than the Fed, get out!

[Lindsey]

3. I'm definitely going to the payroll dept. asap

The double bummer is that they'll be taking more out to help with next year while at the same time I'll be making some kind of pmts. to the state for several months until I get this paid. So it looks like it's going to be a real penny pinching few months coming up (hell..I'm not even a big spender as it is). A big part of it is that I have nothing to claim. I know I need to buy a condo but you know how that's almost impossible to do these days in the California market. I'm seriously considering buying a boat to live on in the marina in Long Beach. I know I'd be saving a lot of money in the long run and I'm a minimalist who doesn't need a lot of space. Geez....it really is the middle class who gets screwed while the wealthy get off scott free.....:-(

[LynzM]

4. That sucks...

I have a couple of Cali friends, and I cannot imagine how they pay their bills, never mind taxes like that. "Run away, run away!" ;) I hope you work something out and the next few months aren't too rough on you!

[FloridaPat]

5. Join the big boys and girls and start a business. You can do

it out of your home and take a lot of yhour normal expenses off your taxes as business expenses. You get even bigger breaks with a company that's incorporated.

[LastKnight]

6. just remember when your making the check, halliburton has two 'L's lol nt

[Elidor]

7. It's going around

I just found out last night I owe the Infernal Revenue Service $1,000. A bolt out of the blue. That's about ten extra days I'll be tithing to Uncle Sam this year.

[Indiana_Dem]

8. I feel your pain!

I always got a return but last year for the first time, I had to pay $750!!!! I went into deep depression until I got it paid! There was no spring break for me!!!

[Exultant Democracy]

9. What a kick in the tubes,

I always pay more out of my paychecks to make sure that I end up getting back. It is like a crappy non-interest savings account that I can't spend till I get it, but it always give me a nice little cash infusion.

[Lindsey]

10. Well, it's the next day and you know how people say, "things

will always look better in the morning?" Well, I STILL OWE $1,500 in taxes and things don't look better because I'm closer to the deadline. Plus, I have to wait until Monday to talk to the State Comptroller's office to see how flexible they are with people making pmts. I heard the interest (at least with the Feds) is outrageous. Oh well, it could be worse. I was actually worried that I may owe more.

[Exultant Democracy]

25. Good Luck

I hope everything works out for you.

[Deja Q]

11. I second the post, put in 0 for deductions and let them take it out

beforehand.

Even still, I did some computer work on the side and made $500 this year that I have to report. That means there's the self employment tax, tax they take out from employers, tax they take out rom employees... which means my net side-income is -$200...

There's no point in side-employment. Worse, with the big companies doing the same thing, I wouldn't be able to make a mark anyway.

Big companies are evil. So are their supporters. And people who say they are for small businesses when their actions show they are for large businesses; for the large eat the small...

This is freedom?!

[MidwestMomma]

14. Don't mean to butt in but I thought you only had to report earnings over

600.00? Did the company you did the work for send you a 1099? They are only required to send if they pay over 600.00 for work. If no 1099 you shouldn't have to report...that's how I understand it. I did some temp work for my sis's employer one year and I intentionally stopped at under 600.00 so as not to report...I don't think it's cheating...maybe it is? Anyone else have any input?

[Deja Q]

16. Thanks for butting in!

I kinda butted in originally myself...

I just get a check for the work done from the people who ask me to fix their 'puter or work on their web page (which is also equally rate).

It's hard getting 1099s from co-workers' friends, but if you're right on this then I need not worry about my web page project...

I'll talk w/ my tax specialist when I go in on 2 April... Indeed, given that the last 3 years I'd made less than $600, I should be getting more money back. Lots more...

[MidwestMomma]

17. Yes, definitely check with your tax specialist

Hope it works out for you.

Isn't it sad how us little people get screwed over taxes and have to sweat to pay our tax bills meanwhile the big dogs pay somebody more than I make in a year to figure out how to avoid them paying taxes at all. What a world!

[FlaGranny]

21. Not to throw too much cold water, but

every single cent you make is supposed to be reported. You could do 100's of $500 jobs and earn $50,000 a year. The company doesn't have to give you the 1099, but you ARE supposed to report your earnings. My husband has been self employed for years, and he would have almost NO income to report, if he only had to report 1099's.

Edit: Our tax hit this year was $1400, but about what we expected, as he is self employed.

[freeforall]

12. Uggh! Sorry to hear it.

Wish they'd get a 10% flat tax for everyone, corporations included. And absolutely no breaks, concessions, etc.

[Deja Q]

13. Definitely no breaks allowed...

But large corporations should pay more, given their threat to small companies and to free enterprise in general.

[sleepyhead]

15. Can you file for an extension?

Don't know how it works in CA, but you can sometimes apply for a 6-month extension. You have to send them SOMETHING though. I vaguely remember setting up a payment plan for my NJ state taxes, and they were surprisingly understanding and flexible as long as I was making an effort to pay. Granted, that was another state and many years ago, but it never hurts to ask. It may not be as dire as you think. Good luck!

[Lindsey]

18. It truly is sad that we, the middle class, the folks

who work in the trenches everyday, are the ones that pay the most (percentage wise). I remember when Gore was running he repeated several times that Bush was going to give tax cuts to the top 1% and that he, Gore, would give the cuts to the middle class.Well, as we know, Bush was true to his word on one and only one thing.... the tax cuts. It sickens me....

[Lydia Leftcoast]

19. Go in and talk to both the state and Feds

I've never had to negotiate with a state tax office, but the Feds would rather put you on a payment plan than have to come after you, so they're very helpful and pleasant in working things out. They're seeing a lot of that sort of thing, given all the unemployment and failing businesses.

[Kadie]

20. Send them a letter with you return.

Send in a letter with your return and a check with what you can afford at this time. Explain your situation. I am sure that they will work out a payment schedule for you. I had a friend that did this several years ago and they were very willing to work with her.

Or, you can always call the Franchise Tax Board before mailing your return, they should be able to answer your questions.

You may also want to change your exemptions so you don't have this same problem next year.

Good Luck.

[gmoney]

22. Second opinion?

Not sure who did your taxes, but it might be worth getting a second opinion on your returns. H&R Block does a lot of shouting -- something about how they'll review previous years' returns for "free" and you only pay if they save you money. They might be willing to do it for this year's return, too.

Either that, or go to a "Mom & Pop" CPA outfit and ask if they'll just look it over for you. You might have to pay $50 for the appointment, but it could save you a lot.

In some ways, taxes are a little bit open to interpretation, and your guy (or you yourself) may have put money into one pile when it could have gone into another. Just a thought.

Or if your credit is good, Bank One has a premium credit card that lets you pay zero interest on purchases until next January, even on "convenience" checks. You pay a convenience check fee, no more than $50, then make payments to the bank instead of the government. Not an ideal solution, but it might be better than something that looks like a tax delinquency or paying 18% to the state of California.

By the way -- pet peeve: people who say they're getting a "return" on their taxes when they mean a refund. The tax return is the form you send in to claim your refund, or with your pound of flesh. :)

[dawn]

23. You can set up monthly payment plans with the State of CA.

I have to do that, too. My husband and I owe 1,100 to the State of California while owing $300 to the Feds. And yes, we had our taxes done by H & R block, and own a small business. We were able to make lots of deductions, but it didn't help enough.

There's a form you have to download on their site. That's what we are doing.

What's funny is that I was laid off last year. I had a large severance package which upped my gross income. However, it was heavily taxed in the first place. So I got screwed TWICE! :(

I don't know why we'd owe so much more to the state than to the feds. I think the standard deductions are lower for CA.

[SW FL Dem]

24. CA's withholding tables have been screwed up for years

When we lived there, we always got federal refunds but owed the state even though we claimed 0 exemptions for state withholding purposes.