Ignorance of the Tax law is no excuse

Posted: January 2, 2011 in economy, opinion/news
Tags: ,

After recovering from the biggest Christmas open house ever I called my brother who had missed the party and inadvertently found out that I have some work to do ASAP.

Back when I owned a business decades ago I paid what was called quarterly wages, basically estimated tax payments.

Well I don’t remember how it came up (then again after a party that started at 2 p.m. and ended at 4 a.m. anything I remember today is a big bonus) but this also applies to individuals, that is: if you haven’t paid the vast majority of tax due the previous year by Jan 15th or so you pay an additional penalty.

Given the California IOU’s business (and just being broke) I suspect a lot of people didn’t have taxes deducted from unemployment. Given the massive amount of unemployment in the country, there are likely going to be millions upon millions of people getting a nasty tax penalty at the time they can least afford it.

For those who considered their unemployment “fun-employment” the party is about to end.

Comments
  1. Andrea says:

    I didn’t have taxes taken out of my unemployment for the first few months because I was still trying to learn how to live on less than half of my pay. When I started having taxes taken out and I ended up with $71 dollars less a week on a whopping unemployment check of $375. It was a real hardship. I’m still confused how unemployment can be taxed. It’s not earnings, isn’t it insurance? My gosh! I ended up going from $40 per week for groceries to less than $25.00. There is not a lot of good food one can buy on $25 per week… pasta and bread, pasta and bread. No fresh veggies or fruit at all. I did not enjoy being on unemployment at all. I stayed home and searched for jobs… why would anyone think a person is “milking the system” by being on it is beyond me!