01-31-2013 05:13 PM
Did the underwriter require that you provide them with 2012 taxes before you could move forward? Taxes aren't due until April 15th, and since you close in March, it shouldn't be a requirement for you to show them 2012 taxes.
01-31-2013 06:31 PM
I'm self employed and also need to show my 2011 and 2012 returns (wasn't self employed in 2010). Iv'e been on a set payment plan with the IRS since last June and have gotten my balance for 2011 down to around $2,000 (originaly $6,800). I'm gonna be filing my 2012 returns Friday and will end up owing about 7k. I just cannot believe that FHA would expect 2012 returns to be paid in FULL when you actualy have til April 15 before they are considered past due. I CAN understand maybe requiring a payment plan, but not the full amount. If so, I'm "screwed" also. Would love to hear opinions from loan officers or brokers on this subject.
01-31-2013 06:38 PM - edited 01-31-2013 06:45 PM
Well technicaly self employed are suppose to pay estimated quarterly tax with last payment for previouse year made in January.
And that is weird, i owed $6700 from 2011 and $7900 2012. We are so close in numbers. Im guessing you are shopping in the $100-$125 range as well.
Heres the house im under contract for.
Offer accepted was $115,000
01-31-2013 06:49 PM
The issue really lies in the fact that a year has past and he hasnt paid anything to his 2011 taxes. Didnt file, or make arrangements.
You have a number you feel you owe, does that number include penalties and interest to IRS?
I use to wait til the end of the year to pay my taxes, but I learned my lesson when I had to pay an exorbant number as business grew. Much easier to break it down quarterly as been mentioned and less headache.
01-31-2013 06:51 PM
We are close in numbers Viiny P. I'm planning on purchasing the home Ive been renting this past couple of years. Very nice home. Price is $82,500 . Hoping to go FHA 15 yr. fixed. My payment will be about what i'm paying now to rent. Just hope to God these 2012 tax returns are not gonna come back and bite me. STILL cannot believe they would expect these to be paid in full....
01-31-2013 07:34 PM
01-31-2013 07:41 PM
Yes, great prices in Florida these days. Houses that sold for $280K are $120K today. Well someare a liitle beat up inside and need $20K renovation.
That one they recarpeted and painted + pressure washed the pool. Was listed 2 months, i dont know why nobody bought it. High sink hole population down there but hey there is weather risk everywhere any more but Oregon and Washington.
01-31-2013 08:06 PM
I'm gonna be filing my 2012 returns Friday and will end up owing about 7k. I just cannot believe that FHA would expect 2012 returns to be paid in FULL when you actualy have til April 15 before they are considered past due. I CAN understand maybe requiring a payment plan, but not the full amount. If so, I'm "screwed" also. Would love to hear opinions from loan officers or brokers on this subject.
The taxes are required to be paid in full on or before April 15th though. If you setup a payment plan for after that date, then the amount is past due and there will also be penalties and fees assessed. You are supposed to pay quarterly estimates taxes througout the year, so when tax time comes, you don't owe anything or owe very little. If you owe $7,000 for last year, then this year you should make 4 payments of $1,750 so that when you do your taxes for 2013 next year, you won't owe anything. It sucks because that means you have to pay the $7,000 owed from last year, plus $1,750 every 3 months this year. The quarterly estimated taxes are actually a requirement from the IRS, they let you slide for a couple years but if you don't start paying them they will come after you.