- quote -

A fourth quarter estimated tax payment is not required if
you file Form 1040 or Form 1040A and pay any tax owed by
January 31, 2003.

See Publication 505 for details free at www.irs.gov.

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"Harlan Lunsford" wrote:
- quote -

In other words, I'm mistaken. Thank you for the reply!

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"Bud Recor" <brecor[at]twcny.rr.com.removethis> wrote:
- quote -

Whether you pay an installment in January or not if you end
up underpaid you'll owe a penalty for each quarter so you
may want to apply your withholding in the quarter withheld
instead of averaging it. This will reduce the penalty
considerably. Check the D box on Part II (2003 form 2210)
and complete Part Iv and figure your own penalty (don't let
the IRS do it). If you do pay an installment in January
you'll have to complete the 2210 Schedule AI AND apply
withholding as above and figure your own penalty. ed

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Reno Master wrote:

- quote -

When? I don't know, but all my working life. I'll try to
remember to check my 1956 Prentice Hall tax course book next
week at the office for you.

Christmas Cheer$,
Harlan Lunsford, EA n LA

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When did they institute the January payment or filing
requirement? As I remember it, no estimated tax payment was
required on 4th quarter income and you still had until April
15 to file and pay!

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"JackMetal" <fullmetaljack[at]excite.com> wrote:

- quote -

If your year to date withholding (plus any additional
payments/estimates) exceeds last years total tax liability,
then you shouldn't have to worry about an underpayment
penalty.

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JackMetal wrote:

- quote -

Simplest thing to do is send in the Jan 15th estimated
payment, assuming it's over 1000$, and then take your time
filing your return. In your haste to file by Jan 31st might
overlook something.

You might be surprised though. Perhaps your employer
overwithheld the first 9 months and with that your balance
might even be less than 1000$, in which case no penalty. No
sweat.

cheer$,
Harlan Lunsford, EA n LA

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"JackMetal" <fullmetaljack[at]excite.com> writes:

- quote -

It's not likely but if you were underwithheld, in any of the
prior quarters, you could be subject to some underpayment
penalty.

There will be no consequence if you have paid in at least as
much as was your last year's tax (110% if your adjusted
gross income exceeded $150,000), or paid in 90% of what will
be the current year tax, or you end up owing less than $1000
on your 2003 tax return. If you meet any of those
exceptions, you may owe tax on your return but there will be
no penalty for underpayment.

- quote -

Yes and No, respectively!!=

"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

Where Ignorance is bliss, 'tis folly to be wise!=

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I was employeed by a company for most of this year (Jan-Sep
2003). In October I became a contract employee and the
company no longer took out taxes.

Since my contract didn't start until October, I of course
didn't send in any estimated tax payments this year. Should
I send in an extimated tax payment by Jan. 15, 2004?

From what I've read, if I send in and pay my complete taxes
by Jan. 31, 2004, I don't have to pay the Jan. 15 estimated
tax bill. Is that correct? If so, will I still owe an
underpayment penalty?

Any suggestions?

Thanks for any help. I really appreciate it.

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