Avoid an under-payment penalty - Tax Tip of the Week

If you owe more than $1,000 on your federal tax return; $500 on your Ohio tax return; or $100 on your city tax return, you will be hit with an under payment penalty.One way to avoid this penalty is to make sure you pay enough in taxes in 2009 to equal or exceed your 2008 tax liability.  This is called a Safe Harbor estimate.  The taxes can be paid via withholdings, or making an estimated payment.If you had any changes in your 2009 earnings, you should check your pay stubs and make sure enough will be withheld to avoid penalties.Call us with any questions. In Dayton, call 937-436-3133 and in Xenia, call 937-372-3504. Or visit http://www.bradstreetcpas.com....until next week.