If you do not have 100% of last years or 90% of this years taxes
withheld (or paid in equal amounts quarterly) and the amount you owe
when you file your taxes is over $1000, you will have to pay penalties
and interest. If you realize this situation might happen to you before
the year is up, then this is a good method of getting those taxes paid
as "withheld" and not be subject to those penalties and interest.
···
-----Original Message-----
From: Jack CT [mailto:meowmeo…@…net]
Sent: Friday, December 20, 2002 3:25 PM
To: vpFREE@yahoogroups.com
Subject: [vpFREE] Withhold Taxes on W2
I recently hit a royal at Mohegan Sun (Yes Virginia there is a Santa
and,
at least for a moment, he was hanging out at an Indian Casino in
Connecticut) and I was asked if I would like to have taxes withheld from
the payoff. I had never been asked this question when signing a W2. I
realize Connecticut has some horrible tax laws regarding gambling
winnings...no deductions against winnings....but, regardless, I'm not
sure
why someone would want taxes withheld.
If you indeed end up owning taxes, why not pay on April 15? I suppose
if
you are afraid that you will be broke on 4/15, of if you pay estimated
taxes, then a withholding at payout might make sense. Otherwise, why?
Any insights?
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