I received a notice and bill today from the New Jersey Division of Taxation for $26.11. Since my income in 2006 was higher than I expected and I didn’t adjust my state withholding from my day job (only federal), I owe for back interest that would have been collected on my neglected estimated payments throughout 2006.
This doesn’t bode well for 2007. I didn’t make estimated payments or adjust my withholding this year, either. Additionally, I have to increase my federal estimated payments in order to avoid a penalty as this year’s income is greater than I expected as well.
I have to find myself a tax accountant before it’s too late; I don’t want to pay more penalties.
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{ 8 comments… read them below or add one }
Flexo you can probably squeeze a state estimated tax payment in here:
https://www1.state.nj.us/TYTR_RevTaxPortal/jsp/IndTaxLoginJsp.jsp
Thanks, Joel. I gave that a try, scheduling a payment for the last remaining estimated taxes due date but received an error message indicated the settlement date is invalid. I also tried to schedule a payment for Monday with no luck, either. I’ll have to give them a call to see what my options really are.
You’ll have to post the results. I’ll be shocked to hear if a state government won’t take your money!
All you need to do is estimate how much additional withholding you need and divide that by the remaining paycheck for this year and inform your HR rep to make the adjustment.
I had the same issue and HR added a few bucks for me immediately.
But definately get a tax accountant, it was the best investment I ever made.
That’s a bum deal! Do we get interest added to our tax REFUNDS at the end of the year (if we have one).
Hey you better pay up or Joey bag of doughnuts will be visiting you soon!
As long as you have paid an amount equal to your previous year’s tax liability there should be no penalty for not paying the total you owe. Then you just pay the difference by April. At least that’s the way it is with the IRS and AZ.
Thanks everyone. I tried again to schedule the estimated tax payment for January and was successful. This should bring me up to date for the state and I should be able to avoid penalties for 2007.