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        New Message Board Archives >> 2007 General Board Posts >> Tax savy advice requested.
        
(Message started by: Redd on Jul 11^th, 2007, 12:15pm)

Title: Tax savy advice requested.
Post by Redd on Jul 11^th, 2007, 12:15pm

I'm curious as to what the tax consequences of a switch from Aggregate withholding for commissions and bonuses to Flat rate 25% withholding could be for a head of household one minor dependant?

I know there are tax professionals in this family, and we were only made aware of this today, although they converted over a month ago.

I hope this doesn't translate to less money all around. I mean if it's going to make for a larger tax refund at the end of the year, then that is ok, so long as it doesn't leave me short to pay the bills monthly.

In other words.....HELP!

Title: Re: Tax savy advice requested.
Post by BMoneeTheMoneeMan on Jul 11^th, 2007, 10:57pm

Hi Pegg,
U should calculate what your total estimated tax rates will be. For example, maybe last year you made $100, and at the end of the year you tax returns show your liability was $7.62 in FICA taxes, $10 in federal taxes and $8 in state taxes. This would be a total of 26%.

Use your current income or estimated income and figure out your projected tax liability if you meet your estimates. Then, once you know your estimated income and your estimated tax liability, thats how you get your rate to withhold in the future.

PF wishes
B$