In a message dated 11/23/2003 4:17:18 AM Pacific Standard Time,
vpFREE@yahoogroups.com writes:
Date: Sat, 22 Nov 2003 07:17:10 -0800
From: "Randy C" <randyc@uclalumni.net>
Subject: RE: Tax QuestionsI’m sure it’s too late to add, but requesting withholding can do more than
just save time on paperwork. If you have under withheld or under paid
estimated taxes during the year, having taxes withheld from a jackpot can
save you money in penalties and interest. Withholding at any point during
the year is treated as being done equally throughout the year.So theoretically, if you had underpaid taxes of $5000 during the year, you
could on December 31 go to a $5 machine and have every W2-G payment withheld
until you made up the $5000, thereby eliminating any under withholding
penalties you might have incurred.
Good point. This also applies to wage income. That is you can change your
withholding on your wages so that all except the portion needed for your normal
deductions can go to Fed & state in the last month.
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