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Can we work to change the federal poverty level to reflect reality?

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intheflow Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-15-10 11:42 AM
Original message
Can we work to change the federal poverty level to reflect reality?
I just finished my taxes. I made a little over $14500 last year but owe $1750 in taxes because two of my employers don't take out federal tax. WTF orifice am I supposed to pull that money out of? I have $98 in the bank, my car insurance is due at $97 or it'll be cancelled on Tuesday, and I am totally and royally fucked.
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handmade34 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-15-10 11:50 AM
Response to Original message
1. not much solice but
Edited on Thu Apr-15-10 12:03 PM by handmade34
the IRS is really good about working with you... it seems not much is done in the sphere of reality anymore
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NoNothing Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-15-10 11:53 AM
Response to Original message
2. You can file for an extension
The IRS will give you time to come up with the cash.
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eShirl Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-15-10 11:54 AM
Response to Reply #2
3. +99999999999
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Traveling_Home Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-15-10 11:58 AM
Response to Reply #2
7. No, you can get an extension for filing NOT for paying nt
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HopeHoops Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-15-10 11:59 AM
Response to Reply #7
9. Actually, from 1127 is SPECIFICALLY for a 6 month grace period to pay.
You have to provide a shitload of information, but that's what it is there for.

Either way - FILE ON TIME!
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jody Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-15-10 11:58 AM
Response to Reply #2
8. I believe one must pay estimated tax due when you request an extension and other charges may occur.
http://www.irs.gov/pub/irs-pdf/f4868.pdf

Interest
You will owe interest on any tax not paid by the regular due date
of your return. This is April 15, 2010, for a 2009 calendar year
return even if you qualify for the 2-month extension because you
were out of the country. The interest runs until you pay the tax.
Even if you had a good reason for not paying on time, you will
still owe interest.

Late Payment Penalty
The late payment penalty is usually ½ of 1% of any tax (other
than estimated tax) not paid by the regular due date. It is
charged for each month or part of a month the tax is unpaid.
The maximum penalty is 25%.
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jody Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-15-10 11:54 AM
Response to Original message
4. Do you owe a penalty for not making quarterly income tax payments? n/t
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intheflow Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-15-10 12:20 PM
Response to Reply #4
11. One of my employers never told me they weren't withholding federal tax.
Regardless, I only made $1850 with them. That $100 has gone to gas. I'm quitting that fucking job, it's 40 minutes from my home and without it I would have earned enough to qualify for the Earned Income Credit.
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deaniac21 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-15-10 04:45 PM
Response to Reply #11
25. I would suggest that in the future you should take a glance
at your check stub.
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zipplewrath Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-15-10 11:55 AM
Response to Original message
5. That sucks
Call 'em up. They'll work out an extended payment plan. Their interest will be vastly less than a payday loan.

This year, "take it out" yourself. You can pay quarterly. It'd be about $30 a week.

I'm a bit surprised though, I'd thought the federal minimum had run up to about 18K lately. Sure you filled it out right? But you're right, we really need to increase both the poverty level, and the standard deduction to reflect reality.
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dajoki Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-15-10 11:58 AM
Response to Original message
6. Who did your taxes?
It seems to me that someone making $14500 should not owe any taxes at all.
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intheflow Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-15-10 12:21 PM
Response to Reply #6
12. The federal poverty line for a single person with no dependents is a little over $10K.
Edited on Thu Apr-15-10 12:22 PM by intheflow
That's why I'm saying they poverty levels need to be adjusted to reflect reality. Right now they only take housing costs into effect, they don't consider the cost of food, transportation, insurance, or any other expenses. I'm not even eligible for food stamps.
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dajoki Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-15-10 01:40 PM
Response to Reply #12
21. I agree with you 100%...
that the way the poverty level is figured must be changed, I made a few posts about that myself, they're in my journel. I still don't how you ended up owing so much in taxes, my wife and I have more income than you and we still get everything back. Maybe you should file the long form so you can get all the deductions you deserve. Good Luck!!
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proudohioan Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-15-10 12:09 PM
Response to Original message
10. Stupid question, I know.....
but did you remember to count yourself as an exemption? I did that one year myself, and thought to myself (in a big panic) that I was fucked cuz I didn't have the money. When I calmed down I looked over my return again carefully and realized I didn't count myself as an exemption.

Owing taxes on $14,500 just doesn't sound right. If it turns out to be correct, that's really fucked up for sure!

Best of luck to you; I've been in a similar income bracket myself lately!
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intheflow Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-15-10 12:33 PM
Response to Reply #10
14. OMG, thank you!!!
I filled out the 1040EZ which does not give you an option to include yourself as an exemption. Using the regular 1040, I get back the whopping $76 I paid in Federal Taxes. Thank you, thank you, thank you!!!

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Dappleganger Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-15-10 12:36 PM
Response to Reply #14
15. Glad that worked out for you!
It just didn't seem right for you to have to pay that much.
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FarCenter Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-15-10 12:44 PM
Response to Reply #14
18. Line 5 of 1040EZ is where you claim your deduction
Should be $9350 if single.
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intheflow Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-15-10 01:51 PM
Response to Reply #18
23. The online service the IRS web site directed me to
Edited on Thu Apr-15-10 01:53 PM by intheflow
did not have a line for an individual exemption. :shrug: I double checked it after the poster suggested it to me, and it really wasn't there.
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proudohioan Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-15-10 04:10 PM
Response to Reply #23
24. Sorry, I should have mentioned that this was about 8 yrs ago...
that I made that mistake. They apparantly are tying the personal exemption and deductions together nowadays???? I did my taxes on-line and didn't realize that that was all lumped together now. I didn't mean to mislead you.

Hope you got this squared away and don't owe and $$$$.... if not, try calling the Taxpayers Advocate office; I've worked with them before and they are pretty good.

T.
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proudohioan Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-15-10 01:23 PM
Response to Reply #14
20. I am so glad that I could help....
and frankly, glad that I am not the only one that had made the same mistake!

Best of luck to you, and hopefully you will get some better employment really soon!!!

T.
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Blue Diadem Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-15-10 12:31 PM
Response to Original message
13. There has to be a mistake somewhere
Edited on Thu Apr-15-10 01:14 PM by Blue Diadem
If you made 14,500 and subtract your exemption and standard deduction for a single person, that leaves 5150 as taxable income. Federal tax for $5150 is $513 and I didn't figure in schedule M which I would think you would be entitled to as well.
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FarCenter Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-15-10 12:39 PM
Response to Reply #13
16. If he's single, filing individually, a form 1040EZ should have $400 in line 8
And see the "Making Work Pay" worksheet on the back. Which is the substitute for Form M on a 1040EZ.
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Blue Diadem Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-15-10 12:43 PM
Response to Reply #16
17. Ah thanks for that. I did mine online so I haven't seen anything other than a 1040 in years.
I see he apparently found his mistake.
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FarCenter Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-15-10 01:01 PM
Response to Original message
19. 1040EZ from the info in your posts
Edited on Thu Apr-15-10 01:05 PM by FarCenter

Line 4      $14,500 adjusted gross income
Line 5        9,350 assuming single, not claimed on another's filing
Line 6        5,150 taxable income
Line 7           76 withhheld
Line 8          400 assuming single, making work pay credit
Line 9a           0 not eligible for EIC
Line 10         476 total tax withheld and credits
Line 11         518 tax from table on page 27 of the instructions
Line 13          42 tax owed

http://www.irs.gov/pub/irs-pdf/f1040ez.pdf Form 1040EZ
http://www.irs.gov/pub/irs-pdf/i1040ez.pdf Instructions 1040EZ
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intheflow Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-15-10 01:50 PM
Response to Reply #19
22. Not according to the online filing service the IRS directed me to. n/t
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inna Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-15-10 05:36 PM
Response to Original message
26. K&R
The whole system is rotten to the core. :grr: :mad:
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