Taxes owed for single male age 40 in Washington State for 2018.?
Qualified business expense: 1500
IRS Early distribution: 15000
Federal Tax Paid: 9300
Mortgage Interest Paid: 5000
Student Loan Interest Paid: 500
Tax Year: 2018
I have an estimate between 7000-7500 due to the IRS. I would like to avoid hiring a tax professional and wanted to see if my estimate sounds within a reasonable range? About 9000 is from income for contracting, and was able to qualify $1500 as business expenses. I did buy a house and had to qualify for an FHA loan, which was an extra $5000, I didn't find that any of that qualified as being wrote off. I am not a first time home owner. I have two younger buys, but their mom claims them as dependents. They spend 40/100 of the time with me.
Okay, so I figured that with the IRS penalty and the business income, there was an additional 22000 that wasn't taxed and 10 percent penalty on 15000 for early distribution. In Washington State, that would equal about $7500 that is still owed to the IRS. I feel comfortable with that number. Also, it doesn't look like 5000 is enough to qualify for anything as far as mortgage interest is considered. Thx for all the feedback.
- StooLv 76 months agoFavorite Answer
Fill this out in any online tax prep software, and you'll get an answer (and with online software not have to pay until you file a return.) But it sounds about right - 9300 tax on 78000 would be quite low. You should look at paying more as it comes so you're not stuck with sticker shock at the end of the year, and any extra contracting work reserve a chunk for taxes right away.
- 6 months ago
That figure sounds about right. Just use Turbo Tax or similar.
- 6 months ago
Okay, thanks for the feedback. I used Credit Karma. So, what's the consensus? I see 4000 and see that my estimate or Credit Karma of 7000. Just curious why the large discrepancy?
- NeverLv 76 months ago
Most of the tax software like turbotax will let you enter everything and tell you how much you owe or will get back BEFORE you pay them a dime.
I have been using olt.com, its cheap but not free, $7.95x2=15.90 for both. The first 2 years it figured the same as turbotax so I quit using turbo tax.
I don't have all the stuff you do but I do have lots of bank accounts and stock trades.