DeathMetal

iTrader: (2)

Turbotax appears to have a pretty solid federal estimator on its site, but I have not found any decent places for estimating STATE taxes...any one site that could be recommended?

Never Summer

According to Turbo tax I'll be getting back ~$2,100 from the Feds, I'd be interested if there is somewhere to find out state taxes too.

DeathMetal

iTrader: (2)

The only thing I'll be getting from state is a reason to drink, even WITH paying horrifically overpriced property taxes...just need to make certain I socked a sufficient amount aside.

LaCostaRacer

Here's a ballpark method:

1. take a look at your pay stub
2. divide State withholding by Fed withholding to get a factor
3. multiply factor by the estimated Fed refund (and subtract $500 if living in CA or some other high tax state)

I like to owe taxes instead of getting refunds- makes me think I'm maximizing my money by not giving them an interest-free loan. I try to cut it as close as possible without getting penalized. April is always a high cost month for me with income and property taxes.

DeathMetal

iTrader: (2)

Cherish the thought, but last year I owed state and recieved a refund for federal...so this doesn't quite pan out (NJ, high taxes FTMFL)

Yeah, something's not quite where it should be with my taxes. I am hiring a financial consultant so I don't have to worry about this next year and to ensure my money is being put to work efficiently.

Thanks for the suggestion with the calculation, though.

LaCostaRacer

^Yep- I often owe CA more than the IRS too and that's why I have the subtract $500 step. I find I generally owe the state about $500 more than the IRS each year for various reasons.

I pay estimated taxes and often pay the IRS more frequently than the state. I especially hate the fact that CA can't send pre-addressed envelopes like the IRS does. It sounds dumb, but it makes it much easier to pay IRS and I reward them more often as a result. The envelopes and the fact that CA can't seem to make a budget causes me to rebel and not pay them like I should.

I had a great stock trading year so it's time to sharpen the pencil and see what I need to pay on Jan 15 for the last estimated tax payment for 2010.

LaCostaRacer

^ Part of sharpening the pencil entails actually entering numbers into my next year's tax program which just came out.

I just bought TurboTax for making some final estimates on things before the year ends.

Here's what I find pretty accurate:

1. use your paystub's figures and enter them in for the W2 info- add any increments for additional paychecks. For example, I'll do this after 12/16 so I can use my 12/15 paycheck for some almost final numbers and factor in one more paycheck into the final figure going as a placeholder in W2 information. Do the same thing if you have a spouse working.

2. Look at your online broker's (mine is Etrade) Gains & Losses information. Make two entries: one covering long-term gains (LTG) and one covering short-term gains (STG)- use appropriate placeholder dates so the proper tax rates are applied. Use the sum provided by your broker fill in the LTG and STG totals.

3. Estimate received rental income, interest, etc based on last year's values

4. Estimate charitable giving based on last year's values or alter if there are any big changes

5. Do all the other stuff that applies to you with last years values: mortgage interest and property taxes, etc.

6. Let TurboTax tell you what you owe or get as a refund- it's ballpark so expect a +/- ??? difference to be conservative- I usually use $500.

7. For Costco people, save your receipt and wait for TTax to have a coupon in early
January. Buy another copy of TTax and promptly return it (I don't even leave the warehouse) with the receipt used for the first purchase and pocket 10 to 20 dollars in savings.