The Tax Resources Blog

Archive for July, 2010

Irs Withholding Calculator 2010

Question: Will I get penalized come tax time in 2010?

At my job in 2009 my income was about 2400…my hobby this year I made about 33500 in which I made estimated taxes so far of about 3500. I do plan to make an estimated payment in January. I recently visited the irs.gov website and put my numbers in a withholding calculator. I don’t know if I’m doing it right because I have done it a total of 3 times and have gotten different things each time. However, each time it says I am underpaying…if you can help me please do. With the numbers I have given (oh by the way my job fed withholding is $119), do you think this is correct? I tried to get an accountant’s help back in April but they all ignored me. lol…HELLLLPPPP!!!!!!!!!!!!!!!

Answer: That ‘Hobby’ income must be reported as self-employment. You are going to owe a significant amount. Not only that, but if you have waited to make a payment in the fourth quarter, you may also have an underpayment penalty. Best to see a professional and find out how to lessen the mess you are in.

Tax Tip: Withholding Calculator – January 2010