- quote -


Good news -- if you make the payments on time, the remainder
isn't due until April 15.

Jan Zobel EA
--
Jan Zobel EA, author of 'Minding Her Own Business:
The Self-Employed Woman's Guide To Taxes and Recordkeeping'

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"Rob" <rob[at]nospam.com> wrote:

- quote -

You don't quite understand. If your AGI was less than
$150,000 last year you only have to pay 1/4 of 100% of last
year's tax, or $2,500 each quarter, including January 2005.
Also you don't have to pay any remainder until you file in
April 2005.

ed

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"Rob" <rob[at]nospam.com> wrote:

- quote -

Assuming you mean making the final estimate by the 1/15/05
due date, yes.

Mike Lewis, CPA

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"Rob" <rob[at]nospam.com> wrote:

- quote -

Not quite,Rob. If your last year AGI was less than $150,000
you only have to pay 1/4 of $10,000 this year, i.e. $2,500
per quarter. But, more important, you don't have to make
up the difference until APRIL 05, not the 4th quarter, it's
still $2,500 (or $2,750). Pay in 4 equal and on time
installments and you don't even have to complete form 2210,
just file 1040 with the remainder due. ed

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"Rob" <rob[at]nospam.com> writes:

- quote -

No. First, if your 2003 total tax was $10,000, there's no
way your AGI was over $150,000 (or it's at least highly
doubtful), so you only have to meet the 100% of last year's
tax test.

Second, you don't have to make up the deficiency until
4/15/2005. Your 1/15/2005 is still 1/4 of your 2003 tax.

Phil Marti
Topeka, KS

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- quote -

There is no penalty for underpayment, as long as you have
paid in as much as was you prior year's tax (110%, you say,
in your case), you have paid in at least 90% of what will be
you current year liability, or (on the bottom line), you owe
less than $1,000.

There is no requirement that you pay anymore than the $2750,
in each quarter. There will be no penalty as long as you pay
the balance with your extension or timely filed tax return
for the year 2004.

"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'm paying my quarterly estimated taxes. Last year my total
taxes paid were only around $10,000. This year they will
likely be closer to $40,000. As I understand it, according
to the rules, I can pay 110% of $10,000/4 or only $2750 for
the first three quarters (based on last years taxes) and
make up the rest in the final quarter without penalty? This
allows me to collect the interest for the remainder of the
money I've been setting aside for a while longer. Just
wanted to make sure I understood this correctly.

Thanks!

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