Joe C wrote:

- quote -

In addition to another "no" answer:

She probably should have given them a form W-4P asking them
not to withhold, or to withhold at the rate appropriate for
her filing status (etc.) instead of going with the flat 10%
which is invoked by default if no W-4P is on file.

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"Harlan Lunsford" <hlunsfordns[at]bellsouth.net> wrote:
- quote -

Thanks all, but may I assume there will be no penalties
when she files for 2003 and MUST pay additional income taxes
due on her annuity withdrawel.?

Joe

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- quote -

No. Any penaly on the tax liability in the current year is
based on 100% of last's years liability or 90% of the
current years, whichever is lower. 100% of zero is still
zero....

Dave

"Hid in the reeds are eyes that peek,
voices I don't understand.
Flamingos fly endlessly,
To the silent sky"

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Joe C wrote:

- quote -

I'm saying 'no', since she appears to meet the safe harbour,
or one of the exceptions, the previous year's tax being
zero.

Sure hope that hasn't changed, but if so, I'm sure I'll hear
about it. lol

Cheer$,
Harlan Lunsford, EA in LA

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Joe C wrote:

- quote -

If she had no tax due last year, there's no estimated tax
liability this year.

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Joe C <no-more-spam[at]no-spam.com> wrote:

- quote -

NO, she meets a "safe harbor" condition. She had no tax
liability in the previous year.

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Joe C <no-more-spam[at]no-spam.com> wrote:

- quote -

No if tax last year was zero, no estimates are due this
year. See Form 2210 and /or 1040ES and/or Publication 505

ed

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oe C <no-more-spam[at]no-spam.com> wrote:

- quote -

No.

Alan
http://taxtopics.net

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Joe C <no-more-spam[at]no-spam.com> writes:

- quote -

NO

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

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A senior citizen came to me with this question. She has not
had to file for the last couple of years, but this year
(2003) she took a distribution from an annuity. She was
required to pay 10% withholding but I don't believe that
will cover her liability . Since she had no tax liability
last year will she have to pay estimated tax now? Thanks.
Joe

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