Reply to If you make 300K or more do you always end up writing 15-20k+ check to the IRS?

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Reply to "If you make 300K or more do you always end up writing 15-20k+ check to the IRS?"

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[quote=Anonymous]Please be careful.  When you owe that much annually, you are significantly more likely to be audited by the IRS.

That said, if you have a high income and itemized deductions that are significantly higher that the standard deduction, then you rarely will fit into the standard formulas, including setting your exemptions.  I would recommend that you get TurboTax.  Sometime in the March-June time frame, I will take the previous year's TurboTax, plug in numbers from the current year (I use our early paystubs and mortgage statements to guesstimate our income and withholdings for the year) and calculate a ballpark of what the end of year will look like.  I know that enough tax laws are changed annually to know that this is only a ballpark estimate, but it's enough for me to determine whether I need to adjust our withholdings for the rest of the of year.  It takes up a few hours on one afternoon, but it makes sure that I am on track to be in the right ball park at the end of the year.  I try to be within +/- $1K federal and state.  The one time that I was off significantly (something like $4K federal and $2K state) was when we had some unexpected financial changes that occurred late in the year and I forgot to even check how it would affect our taxes.[/quote]

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