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Valued Contributor
JM-AM
Posts: 3,303
Registered: ‎06-09-2010
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Re: Filed 2011 2012 tax returns closing March26th


Mike_B03 wrote:

Bamagirl80 wrote:

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. 


You can still file for extensions... but thats not the question or issue let me hush! lol

Good Luck
May all your dreams and wishes become a reality!
Valued Contributor
Mike_B03
Posts: 1,141
Registered: ‎11-30-2012
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Re: Filed 2011 2012 tax returns closing March26th

An extension only allows you extra time to file the tax return, it doesn't give you an extension to pay...if that makes any logical sense. :smileytongue: What you're supposed to do, according to the IRS, is make an estimated payment on April 15th along with the request for a tax return extension. If you end up owing more than that you paid in the estimated payment, then you'll still be penalized and have to pay fines on what is owed, even if you got an extension. 

Established Member
Bamagirl80
Posts: 24
Registered: ‎11-02-2012
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Re: Filed 2011 2012 tax returns closing March26th

I'm just hoping since I have an established payment plan I set up myself with the IRS back in June for my 2011 returns, and have paid more than my required monthly payment numerous times during this period, that this will bode in my favor regarding my 2012 returns. *Definitely plan on doing the "quarterly thing"  next go around....

Valued Contributor
Mike_B03
Posts: 1,141
Registered: ‎11-30-2012
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Re: Filed 2011 2012 tax returns closing March26th

Yep, it's a good idea to do the quarterly payments. In the end you pay the same, but it makes it more manageable than having to give them one lump sum. The crappy part is that the first quarterly payment is due April 15th, same as the taxes due from the previous year, so if you owe...and do the quarterly, it can be A LOT of money. 

 

It's also weird because it's not split it completely evenly...the IRS's payment schedule is:

 

April 15, 2013

June 17, 2013

Sept 16, 2013

Jan 15, 2014

 

So you get 3 months between the Jan and April payments, then only 2 months between April to June, then 3 months between June and Sept and then 4 months between Sept and Jan. I don't why it's setup like that, doesn't make sense.

Established Member
Bamagirl80
Posts: 24
Registered: ‎11-02-2012
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Re: Filed 2011 2012 tax returns closing March26th

I'll tell you the "Crappy" part (since wer'e on the subject)  that if you work in strictly commission sales, and are legaly allowed to write off any expenses  associated with your business that you can document (which in my case is ALOT) The fact that you are "penalized" when trying to buy a home IF you write off all you are LEGALY entitled to. Someone about a year ago put it best on this site by stating "Sales is the best career as far as writing off large amounts come tax time, BUT it's the worst career  field when trying to obtain a mortgage. AMEN   *PS in a perfect world 1099's would be treated like W2's 

Established Member
vinylpalooza
Posts: 32
Registered: ‎01-31-2013
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Re: Filed 2011 2012 tax returns closing March26th

I did the same thing, claimed far less then i could have to get a decent house. Then plan to file an amedment in 2013 when i find all them deductions i missed like the entire 4th quarter of the year and that company car including a $4500 printer i bought. Heck im paying late fees on income i claimed that i didnt really make.

Brutal.

Like many others my other half has such bad credit i couldnt add her.

It certainly has made getting into a house quite aggrevating and difficult.

But what are you gonna do, continue renting where you are essentially buying an investor a house. 

Current scores: CK TU: 639, FICO EQ: 700, FICO TU: 707, FICO EX: 697 Lender pull 12/19/2012
New Contributor
slappymancuso
Posts: 167
Registered: ‎12-04-2012
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Re: Filed 2011 2012 tax returns closing March26th

2012 is probably required because you have to be able to show two full years of self employed income via tax returns. Never heard of a lender with flexibility on that part.

As I mentioned, our lender was adamant that you couldn't owe any taxes. Others have been able to get by on a payment plan. It is really going to be lender specific, so I would start talking with my LO or broker to see what they can work out.

Best of luck to you!
Established Member
vinylpalooza
Posts: 32
Registered: ‎01-31-2013
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Re: Filed 2011 2012 tax returns closing March26th

Well i talked to some people today who said you need all owed taxes paid in full through 2012. If you are on a payment plan it has to have been in place for 6 months minimum. His only suggestion for me was borrow the money to pay the IR$ off but then that will go against the DTI. 

He says all FHA lender have similar guidelines.

 

 

 

 

 

Current scores: CK TU: 639, FICO EQ: 700, FICO TU: 707, FICO EX: 697 Lender pull 12/19/2012
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
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Re: Filed 2011 2012 tax returns closing March26th

That's too bad! Ugh! :smileysad: This week has been a week of bad news for a lot of folks, including me. The fact that we have had at least 3 closings this week tells me the world is not ending. How do you feel about waiting 6 months to a year? Are you okay with it or not at all?
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Established Member
vinylpalooza
Posts: 32
Registered: ‎01-31-2013
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Re: Filed 2011 2012 tax returns closing March26th

Nope, i cant take another 6 months in Oregon. I have to find a way to make it happen. Finding that house and getting it down was a hard enough job to quit.

I was wondering what would filling my credit cards up to pay it do for me. Its about $8,000. 

Current scores: CK TU: 639, FICO EQ: 700, FICO TU: 707, FICO EX: 697 Lender pull 12/19/2012

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