In addition to accurate answers, they can provide those answers in writing which can save you headaches and penalties later if another IRS employee has a different interpretation of your results.
But, of course, you can only deduct an amount up to your winnings. You can’t claim a loss.
As for whether or not you need to file a quarterly, it depends on last year’s return and the current witholding situatoin. Generally, though, most people end up overpaying so much that an extra four grand isn’t likely to result in a penalty. Given a choice, I’d as soon have a piddly six-month CD as send money to the IRS.
Dunno about Oregon.
You’re correct by my reading. Bummer.
Now, he needs to sock aside about $1100.
I’m not seeing the issue. “Forgetting the Earned Income Credit” would also mean that the previous estimates of “owing” also neglected the fact that there is NO owing, just a reduction in the refund. Reducing the over-payment would not result in a liability. It’s very likely the with holding will more than cover it, especially when factoring in the refundable credit(s). FWIW, for this very reason I never have any federal taxes with held at all- even though I have to “pay” some every year, in the form of offset against my refundable credits.
Ahem
Why not actually contact the tax people, and ask them? You know, go to the source…:rolleyes: