Fed taxes GOTCHA

This is non-political.

I did my taxes today. I was expecting a big increase in what we owe . The 2018 tax code change capped real estate and state taxes dections combined at $10,000. I live in high property tax NH with a cabin in VT. I knew the tax changes would affect us. Such is life.

What fries my butt??? With out these itemized deductions I did not pay my "fair share" throughout the year. The amount I owe is larger than the IRS likes. So they hit me with an "under payment penalty". Really - after they changed the freaking rules mid-stream????

And people wonder why I own a foil hat and hate the government

And will stay non political.

Lots of us also understand the foil hat and dislike/distrust of the go'vermin (emphasis on the 'vermin') as it has evolved into a huge bureaucracy of unelected officials with power to screw us over. The government wasn't originally designed to allow anyone who wasn't from the masses (House of Representatives) to have power to make laws and thereby screw us over, but it has turned into that.

Cheer up, the census is coming soon where they will ask all sorts of personal questions and not merely take a head count (census). I give them the headcount and nothing more since that's all a census is. When they come to the door months later they threaten me. I kick them off my land. Let's see, "Do this or I'll do this to you", and all without pay. Just what is the definition of slavery? I let them know point blank that I'm, "not their slave and go take a hike". After a few years their threatening letters stop. But it's about ready to begin again.

Phil look for an email re: this thread.

They made me start filing quarterly for the same reason. Stinking govt runs huge deficits and hammers me because although they always get their full cut, they want to get it sooner. I'm making a foil Hard Hat.

What's that expression. 'Pay me now, or pay me later. It's up to you.'  

Something like that.

When I first posted I could not yet finalize the penalty.

The software package offered two options:
1. Wait until the vendor realeased an update covering this penalty.
2. Allow the IRS to calculate and bill me.

No way to #2. I am not going to raise my hand and voluntarily ask the IRS to take a closer look at my filing. Sheesh.
That left option 1. Apparently a lot of folks got caught by the rule change. I kept what I owed just low enough that I did not need to make the quarterly payments that Lipripper had to. But the rule change messed up my calculations.

So this pass weekend I download the updated tax software. I check all of my original inputs and let the software calculate the penalty. Not as bad as expected.

The kicker. Again as Lipripper points out - they want the money NOW. To entice me to file earlier than April 15th they offer to knock seven - yes SEVEN dollars off of my penalty. I would laugh if it wasn’t so stupid. I will pay the penalty and file in April.

I did all this at 6 AM last Sunday. I knew it would Tick me off and did not want ML to suffer. But she got up early and helped me with the paperwork so I could re-check every thing. I kept all cussing internal

Giving the amount of time that has passed, let us know how you've dealt with this situation. An underpayment penalty is a penalty charged to a taxpayer who does not pay enough toward his tax obligation throughout the year. Taxpayers subject to the underpayment penalty use Form 1040 or 1040A to determine the amount. At https://pdfliner.com/form-941 you can find  941 form, in case you're looking for it. When you file your return, the IRS calculates how much tax you should have paid each quarter. The IRS applies a percentage (the penalty rate) to figure your penalty amount for each quarter. The penalty amount for each quarter is totaled to come up with the underpayment penalty you owe.