Taxes & no refunds  

Page 1 / 2 Next
  RSS

Fishbait
(@Fishbait)
Advanced Member
Joined: 2 years ago
Posts: 154
August 29, 2017 1:23 pm  

Good morning! My wife and I are thinking of moving to St Croix as retirees. With the recent financial picture darkening and the USVI government just announcing no tax refunds indefinitely, how do you deal with US & local taxes? (Other than just making sure you are under withheld so you pay rather than have the government keep your refund.)


ReplyQuote
speee1dy
(@speee1dy)
Expert
Joined: 11 years ago
Posts: 8650
August 29, 2017 1:40 pm  

yeah, thats about it


ReplyQuote
STTsailor
(@STTsailor)
Trusted Member
Joined: 3 years ago
Posts: 511
August 29, 2017 1:47 pm  

You have to underpay FICA. That is the only way to keep the local gov honest. There maybe slight penalty but if you expect refund you may not see it for a few years.


ReplyQuote
Exit Zero
(@exit-zero)
Trusted Member
Joined: 11 years ago
Posts: 2259
August 29, 2017 2:08 pm  

I don't think you will incur any penalty if you underpay FICA and pay your owed tax before April 15.


ReplyQuote
Fishbait
(@Fishbait)
Advanced Member
Joined: 2 years ago
Posts: 154
August 29, 2017 2:27 pm  

Thanks! We're from NY so we are used to getting soaked by taxes.


ReplyQuote
fdr
 fdr
(@fdr)
Trusted Member
Joined: 11 years ago
Posts: 1236
August 29, 2017 2:29 pm  

This is different from getting soaked. This is the government not returning money that its citizens overpaid. It's technically theft.


ReplyQuote
Scubadoo
(@Scubadoo)
Trusted Member
Joined: 4 years ago
Posts: 2142
August 29, 2017 3:56 pm  

If you are retired you should have a pretty good idea what your income and taxes will be. Withhold or pay quarterly only enough to cover it. If you are VI resident you fill out the same IRS 1040 forms but send all the money to the VI instead. IRS gets nada. As long as you pre-pay as much as you owed in the previous year there is no penalty. Then again, I've not gotten an IRS refund in years and years, always having to send in more with the return, never received a penalty yet and don't volunteer one.


ReplyQuote
Exit Zero
(@exit-zero)
Trusted Member
Joined: 11 years ago
Posts: 2259
August 29, 2017 4:48 pm  

Thanks! We're from NY so we are used to getting soaked by taxes.

Overall I think you will be happy with the tax situation if you move to the USVI from NY.
Real property tax is low compared to most stateside locales.
There is No State/territory income tax - just the Federal tax rate.
There is no sales Tax -- [although business owners pay a very regressive tax] -- Gross Receipts Tax - which increases the CUL.
The property transfer Stamp Tax is on the sale price or assessed value whichever is higher.
The road tax on Gasoline is modest.
The new "Sin Tax" on cigarettes,beer, alcohol and soft drinks has dramatically raised the CUL on people buying those products. I just read this morning NYC has raised the minimum price on a pack of cigarettes to over $13 - -it is still less than $4 pk. here.
There are often 'amnesty periods' for due taxes that exclude penalties.

under No Circumstances whatsoever should you depend on an Income Tax refund for loaning the IRB your money for years.
**** Make a copy of Everything submitted to the Govt. -- "it could get lost" is why!


ReplyQuote
East Ender
(@east-ender)
Expert
Joined: 14 years ago
Posts: 5276
August 29, 2017 8:18 pm  

"**** Make a copy of Everything submitted to the Govt. -- "it could get lost" is why!"

AMEN! (That means all government offices, not just IRB)

Also, if you do happen to overpay, you can apply it to your taxes the next year.But don't expect to get a check.


ReplyQuote
Alana33
(@Alana33)
Expert
Joined: 7 years ago
Posts: 12117
August 29, 2017 8:30 pm  

Don't expect to get an income tax refund check anytime soon.
Just pay exactly what you owe, if you can.
Indeed keep proof of payment copies of EVERYTHING when dealing with VI Government including cancelled checks.

They onus is on you to provide proof.
Especially true for income and property tax payments.
They're terrible.


ReplyQuote
Scubadoo
(@Scubadoo)
Trusted Member
Joined: 4 years ago
Posts: 2142
August 30, 2017 1:17 am  

At least IRB takes credit cards for property tax payment with no extra fee. Don't see that much in the states. Makes for getting receipts on-line easy plus the miles to go with it.


ReplyQuote
stjohnjulie
(@stjohnjulie)
Trusted Member
Joined: 11 years ago
Posts: 804
August 30, 2017 6:30 am  

Also, if you do happen to overpay, you can apply it to your taxes the next year.But don't expect to get a check.

You can only apply it to the next year taxes if you indicated that on your tax return when you filed. I tried to do this retroactively one year and I would have had to file an amended return, have it processed, etc, to make it happen. Had to shell out a couple of grand and wait for two years to give me the 8k they owed me from previous years.


ReplyQuote
Scubadoo
(@Scubadoo)
Trusted Member
Joined: 4 years ago
Posts: 2142
August 30, 2017 11:00 am  

Also, if you do happen to overpay, you can apply it to your taxes the next year.But don't expect to get a check.

You can only apply it to the next year taxes if you indicated that on your tax return when you filed. I tried to do this retroactively one year and I would have had to file an amended return, have it processed, etc, to make it happen. Had to shell out a couple of grand and wait for two years to give me the 8k they owed me from previous years.

Sounds a little silly but amended returns are not a big deal. You only have to file the differences. I just did one myself, only one sheet for what I needed. But if you think you'll ow next year might as well just do it.


ReplyQuote
NorthsideKevin
(@NorthsideKevin)
Advanced Member
Joined: 1 year ago
Posts: 44
August 30, 2017 11:20 am  

Why would you "underpay FICA"? That's Social Security and Medicare, etc., which all goes Stateside through your employer in any event. If self-employed, it's your "SE Tax" at 15.3% of taxable income, which likewise you have to pay Stateside. What I think you would underpay would be the V.I. withholding, claiming more exemptions, then square up by April 15th. Or, if self employed, simply don't pay anything all year (except any gross receipts due), then pay your tax and any penalty due on or before April 15th. A lot of people, I think, do that.


ReplyQuote
ironheadUSVI
(@ironheadUSVI)
Advanced Member
Joined: 1 year ago
Posts: 253
August 30, 2017 11:28 am  

Late refunds earn a 4% interest rate after June 30 of the filing year. And I rarely get a 1099 for the interest earned. If you can afford it, that's not too shabby a safe investment. Not as good a return as in the market or other methods (tax lien auctions) , but you know that you will get it back, eventually.


ReplyQuote
NorthsideKevin
(@NorthsideKevin)
Advanced Member
Joined: 1 year ago
Posts: 44
August 30, 2017 12:18 pm  

A friend has a $4,000.00 check from IRB from the late '90's framed and hanging on their wall. IRB paid them the same refund twice, with interest. But don't hold your breath today.


ReplyQuote
Exit Zero
(@exit-zero)
Trusted Member
Joined: 11 years ago
Posts: 2259
August 30, 2017 5:40 pm  

Why would you "underpay FICA"? . What I think you would underpay would be the V.I. withholding, claiming more exemptions, then square up by April 15th.t.

That is the correct explanation.


ReplyQuote
East Ender
(@east-ender)
Expert
Joined: 14 years ago
Posts: 5276
August 30, 2017 8:07 pm  

Or, if self employed, simply don't pay anything all year (except any gross receipts due), then pay your tax and any penalty due on or before April 15th. A lot of people, I think, do that.

If you are paying gross receipts, you are making what, $5000 a month or so? You pretty much better file quarterly.


ReplyQuote
NorthsideKevin
(@NorthsideKevin)
Advanced Member
Joined: 1 year ago
Posts: 44
August 30, 2017 8:11 pm  

Last I knew, and I'm not up to date, you had to pay gross receipts monthly if you made more than $9,000 a month. They always said wait until year end, then average (less paperwork for IRB). Yes, you're supposed to pay FICA at least quarterly, or you end up paying a couple hundred in penalties.


ReplyQuote
stjohnjulie
(@stjohnjulie)
Trusted Member
Joined: 11 years ago
Posts: 804
August 31, 2017 6:25 am  

If you make less than $225,000.00 annually, you file gross receipts on anything over $9,000.00 a month you made and you file your gross receipts annually. If you make more than $225,000.00 a year, you file monthly with no exemptions.

Filing an amended return isn't that much of a problem if you are only changing a checked box for sure! But the time that it takes them to process it can be the problem. I'm not sure why it takes them a long time to do some and not others. My case with trying to apply was a little complicated because they decided to audit my 2010 tax, but not tell me about it until late 2013 after dozens of phone calls. Then they decided to audit 2010-2013 at that time too. And again in 2014, and in 2015. No changes were made to any years. They just wanted me to bring box loads of paperwork and prove the existence of my children during each of those years with immunization cards and report cards. They wanted me to bring every invoice and receipt from a business I had as well. Three years worth of paper from a business grossing 3/4 million a year. And this was for a personal audit. My CPA recommended I give them everything they asked for until they asked for that. At that point I had sold the business, and told them if they wanted to audit the business they could, but they would have to get with my partner that I sold out to. They stopped at that point and just put the returns in line to get paid. Fun Fun!


ReplyQuote
STTsailor
(@STTsailor)
Trusted Member
Joined: 3 years ago
Posts: 511
September 1, 2017 12:10 am  

They used to audit if refund was due. My guess is they saved money on interest if the tax return was in dispute.
I believe the stopped that practice of auditing all refunds.


ReplyQuote
AandA2VI
(@AandA2VI)
Trusted Member
Joined: 7 years ago
Posts: 2289
September 1, 2017 6:03 am  

We haven't gotten ours since we moved to the VI. In Jan it'll be 5 years. Would have been real nice to have that cash after or car got stolen this year.

Finally got my fiancé to work on his taxes for next year so he will owe and not be owed.

*** The views and opinions expressed in my posts are soley those of A&A2VI and other like minded islanders. These views and opinions do not necessarily represent those of the majority or any/all contributors to this site. Have a GREAT DAY!


ReplyQuote
Alana33
(@Alana33)
Expert
Joined: 7 years ago
Posts: 12117
September 1, 2017 12:55 pm  

AandA2VI
Hire someone to do your taxes so you pay exactly what you owe.
It's not expensive.
If you ever move back to STT, I can recommend my accountant.


ReplyQuote
Scubadoo
(@Scubadoo)
Trusted Member
Joined: 4 years ago
Posts: 2142
October 31, 2017 10:53 am  

"The governor announced that his administration delivered $3 million worth of tax refund checks in the mail on Monday, an announcement that will come as welcomed news to many."

viconsortium 10/31


ReplyQuote
speee1dy
(@speee1dy)
Expert
Joined: 11 years ago
Posts: 8650
October 31, 2017 12:59 pm  

Wonder if mine is in that pile


ReplyQuote
Page 1 / 2 Next
Close Menu
  
Working

Please Login or Register