Hello. I asked the Turbo Tax online questionaire forum as well as the H&R Block forum, but had no respone. I had to pay in taxes last year. Around $1200 bucks. I had 1040 EZ vouchers printed off. I (thought) those vouchers were like a payment plan to pay off that $1200 bucks I owed. I was wrong......like usual. Those vouchers were to make a payment to the IRS for next years taxes "INCASE" I owed, or so I wouldn't have to owe. Well, this year has rolled around and again, I have to pay into taxes. About $3400. So, what happened to that $1200 I sent in "INCASE" I owed this year, and how do I apply it to that $3400?

After I sent in my $1200 last year to the IRS, 4 months later, I recieved a letter from the IRS saying I still owed $1200. I said, "um, I sent a check to you guys for $1200 and you guys cashed it." She informed me that that check was to go to next years taxes incase I owed, and I quate, "since I was not capable of managing my taxes."


Anyone with advice on how to get credit or too credit that $1200 I paid would be very much appreciated. Thanks

Jason

 

When you fill out this years taxes there will be a place on the form where you list the "estimated taxes" you sent in thinking it was last years payment. That amount will deduct from the current taxes you owe this year or credit to you as overpayment as applicable.

 

I'll look again. I seen the estimated taxes, but the description I was given didn't really make much sense to me. Thanks for the help.
Jason

 

to apply for an installment agreement you will need to file Form 9465.

 

There's vouchers with the tax forms, 1040, etc. The one you grabbed is 1040-ES, for estimated taxes.

ES -- EZ, ain't it the same.

Oh well, dyslexics are teeple poo.

Actually, I was pleasantly surprised last year when I missed one of the liberal giveaways that I qualify for, and the IRS caught it, did the paper work, and sent me a refund.

 

Actually not looking for an installment agreement this year, just a way to credit the money I sent last year to this years. Think Larry has me straightend out on that part. Thanks for help though.

Yup, meant ES. Was even looking at the voucher last night and I still got it wrong.

 

I spend $135.00 and see my accountant once a year. While I do usually owe because I am an empty nester it is usually not to much. The way I look at it is that 135 bucks is super short money to have a highly educated tax professional do my filing for me. The way the tax code changes, my lack of understanding, the lack of desire and time to properly educate myself with all the changes AND the fact that he signs off and handles an audit should I ever get audited is priceless.

 

I second the personal accountant. I have business and have seen the same person for the last two years but thinking it's time to go to a full on CPA.

As far as the $1200 all I can say is make phone calls and get to the bottom of it. Those government folks get lost in paperwork I do believe. I had a tax issue years ago. Had a business and closed it. The local municipal tax folks called me for almost two years asking about back taxes!! Everytime I'd tell them, "Uhhh,(in my most sarcastic are you stupid voice), I closed that a year ago, a year and a half ago" and so on. They finally figured it out or else I had personally told every accountant type in that office.

I'd print off my receipt, check or whatever and start calling the IRS and getting to the bottom of it with the "where is my $1200 from last year".

Good luck with it.

 

In my experience, if you call the IRS on the number they give you, you'll get someone that can look into your account, and tell you how much is posted where and when it was posted there.

It sounds like you have an estimated tax payment posted that you can enter on your 1040, which will take it off the bottom line. Other than the interest part of it, which they will figure out for you and bill you if it's in their favor, it's not really rocket science.

I usually take a shot at the interest thing anyway. About one in 6 I get it right. If I err, it's always on the short side a bit and I pay up later, no big deal.