Results 1 to 4 of 4

Thread: estimated tax vouchers after unemployment

  1. #1
    Member
    Joined
    Apr 2006
    Location
    Boulder, Colorado
    Posts
    34
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default estimated tax vouchers after unemployment

    So I had to quit dancing for the school semester (august 28th thru mid-december) I'm taking a loan and will be receiving no income. I have two vouchers left and can't afford to pay them and it's not a representation of my income any longer since I'm not even working ... What do I do to let the IRS know that I am no longer employed?

    I read the entire booklet and didn't find any answers and google didn't help.

    Thank you

  2. #2
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: estimated tax vouchers after unemployment

    no quarterly income = no estimated income taxes due. After you send in your September 15th estimated tax payment to cover taxes due on your June, July and August gross earings, you won't have to file or pay estimated taxes in January on September, October, November and December earnings that you did not earn.

    If you fail to make the September 15th estimated tax payment then the IRS will start racking up interest and penalties that will sting you when you file your annual tax return next April for all of your 2006 earnings.

    However, if you haven't used up your educational tax credit, and you aren't someone else's dependent for purposes of educational grants and loans, you should be able to use your fall semester tuition costs to reduce the amount of taxes that will actually be due on your total 2006 earnings. This could take the 'edge' off the size of the estimated tax check you'll need to write in two weeks.
    ~
    Last edited by Melonie; 09-02-2006 at 03:49 PM.

  3. #3
    Member
    Joined
    Apr 2006
    Location
    Boulder, Colorado
    Posts
    34
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re: estimated tax vouchers after unemployment

    Thank you Melonie. I'm going to go to an accountant because I was breached for a month between mid July and the beginning of August so I made significantly less than I would in a normal quarter. I didn't know if I had to let the IRS know I was unemployed or not. I'll definitely ask the accountant about the educational tax credits because the cost of my books and tuition is what put the dent in my savings/wiped them out that makes it hard to pay the full tax.

    You are so helpful, I swear most of my 'tax knowledge' comes from your replies here.

  4. #4
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: estimated tax vouchers after unemployment

    ^^^ well, if you're lucky, with the tuition tax credit and the fact that you didn't actually work more than 1/2 of the time in June, July and August, it may turn out that with the April and June estimated tax payments you already made that you won't need to make any additional estimated tax payments at all. The IRS does not need to be informed that you were employed or unemployed ... you simply have to adjust your estimated tax payments to match the actual income that you did or did not earn.

Similar Threads

  1. Replies: 78
    Last Post: 07-30-2020, 08:07 AM
  2. Replies: 8
    Last Post: 04-07-2010, 07:17 PM
  3. Estimated tax payment question...
    By MsClaireVoyant in forum Dollar Den
    Replies: 2
    Last Post: 12-16-2009, 02:53 PM
  4. NY estimated tax?
    By RoseLeigh in forum Dollar Den
    Replies: 8
    Last Post: 08-31-2008, 06:38 PM
  5. estimated tax payments?
    By Picaresque in forum Dollar Den
    Replies: 3
    Last Post: 04-16-2007, 07:35 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •