? asked in Business & FinanceTaxesUnited States · 6 months ago

Taxes owed for single male age 40 in Washington State for 2018.?

Single

Income, 78000

Qualified business expense: 1500

IRS Early distribution: 15000

Federal Tax Paid: 9300

Mortgage Interest Paid: 5000

Student Loan Interest Paid: 500

Tax Year: 2018

Owe: 7000-7500

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.

Thank you.

Update:

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.

4 Answers

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  • Stoo
    Lv 7
    6 months ago
    Favorite 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 agoReport

      Okay, I did use Credit Karma. So around 7000 sounds reasonable? I did see a response of 4000 possible, but that sounds low if I only paid 9300 on 78000.

  • 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?

  • Never
    Lv 7
    6 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.

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