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Bonjon555 · Apr 25, 2014, 11:20 AM

I'm just filing my 2009 New Jersey State income tax. I originally thought that I would not owe. But it turns out that I owe$190.00. How bad will this be? How can I calculate amount with interest, etc. Is it possible that NJ won't charge all possible penalties and interest? Any suggestions on the best way to handle? Aside from the obvious... that I shouldn't have gotten myself into this situation.

ebaines · Apr 25, 2014, 11:22 AM

Just send in a check for the amount you owe, per the tax form instructions. If interest is owed they'll get back to you, but it will be minimal.

AtlantaTaxExpert · Apr 25, 2014, 11:26 AM

You are four years behind. Figure about 10% interest, so that is $19 + $21 + $23 + $25 plus any penalties they assess for late payment and late filing.

Off-hand, do not be surprised if the fees and interest is about as much as the $190 tax payment.

ebaines · Apr 25, 2014, 11:30 AM

I missed the fact that this was for 2009 taxes, not 2013, so the ineterst and possible penalties will be more substantial than I had suggested. How did you just now come to find out you owe this money? Did NJ send you a letter detailing what you owe and why?

Bonjon555 · Apr 25, 2014, 11:32 AM

Thank you very much for your answers!

Bonjon555 · Apr 25, 2014, 11:44 AM

In 2009, I had a lump sum distribution from a profit sharing plan that turned out to be fully taxable in NJ. I originally had difficulty obtaining necessary documentation regarding the plan ( plan administrator changed and neither the old nor new administrator were able to find my info). I figured that property tax deduction would offset the taxable amount and I would be due a refund of $16.00 once all was said and done. But, problem I co-own a single family home with someone. We are not married. We are not CU partners. The co-owner ended up taking property tax deduction for the entire amount of property taxes..

Bonjon555 · Apr 25, 2014, 11:45 AM

New Jersey did not send me a letter

Bonjon555 · Apr 25, 2014, 11:50 AM

Is it better to obtain a tax professional or file and pay, then they will let me know or is it possible to work with NJ to minimize the situation? Thanks for your help

smoothy · Apr 25, 2014, 11:59 AM

You really won't be minimizing the situation... we are talking hundreds of dollars... not hundreds of thousands of dollars. Fill it out pay what is owed... get it behind you.

I'd hire a tax professional unless you are 100% certain you can do it right... at least they will go to bat for you if there is a dispute.

ebaines · Apr 25, 2014, 12:02 PM

It's not clear whether you filed a 2009 return 4 years ago and are now going to amend it, or did you not file at all for 2009 thinking the state wouldn't care because yuo were due a refund anyway? Assuming you did file, to make these changes to your tax return you will file NJ-1040X for tax year 2009, to report the profit sharing income and eliminate the property tax deduction. Given that the State of NJ hasn't realized that you made these errors over 4 years ago I am impressed that you are actually doing this .... you must sleep well at night!