Another Tax Question Thread

[auron]

NOTE: I only know enough about taxes to know I don't need a CPA for my filing since I don't have any other sources of income.

So, I was looking to get closer to 0$ owed/returned in 2012 as I have a refund of $1350 for 2011 (only worked 6 months but withheld at 12 month rate), and came across something that I could not fully explain to myself.

Using the IRS withholding calculator and the following inputs:
1)single
2)$57k/yr
3)$4700 (bonus for 2011 dispersed in 2012)
4)taxes paid YTD: $2077
5)no adjustments for qualified IRA ( I'm making use of a Roth for my company match)
6)no other deductions > just standard

The calculator spits out that I would need to pay ~$9000, but at the current rate would only withhold $8500, thus I would owe ~$500 in 2012. Is it normal for a standard withholding plan to be that far off?

[Petunia 100]

NOTE: I only know enough about taxes to know I don't need a CPA for my filing since I don't have any other sources of income.

So, I was looking to get closer to 0$ owed/returned in 2012 as I have a refund of $1350 for 2011 (only worked 6 months but withheld at 12 month rate), and came across something that I could not fully explain to myself.

Using the IRS withholding calculator and the following inputs:
1)single
2)$57k/yr
3)$4700 (bonus for 2011 dispersed in 2012)
4)taxes paid YTD: $2077
5)no adjustments for qualified IRA ( I'm making use of a Roth for my company match)
6)no other deductions > just standard

The calculator spits out that I would need to pay ~$9000, but at the current rate would only withhold $8500, thus I would owe ~$500 in 2012. Is it normal for a standard withholding plan to be that far off?

Yes.

[phil83]

Yes, my withholding was off by about $800 last year. Just make sure you're putting away some money each month so you're not in a tough spot when you file. If I were you, I'd put $50/month into a savings account.