Does your cousin have any dependents or itemized deductions? If not, just the federal tax liability for $125k is around $20,076. He really needs to act fast. Hope he has some record of communication with the preparer, like emails or texts. A CPA or tax attorney would be really helpful here.
My cousin trusted the preparer because he didn’t know much about taxes. When he told me he got most of his taxes back, I kept digging because it didn’t sound right. I’ll help him find a credentialed tax pro to fix this. Thanks for the advice, everyone!
How did he manage this if only $20k was withheld? Does he normally end up paying, and that’s why this came up?
Flynt said:
How did he manage this if only $20k was withheld? Does he normally end up paying, and that’s why this came up?
$20k is about right for $125k in wages if he’s single.
Flynt said:
How did he manage this if only $20k was withheld? Does he normally end up paying, and that’s why this came up?
Tax on $125k is roughly $19,250. He might’ve just been close to the right amount withheld.