Lipin Telomar wrote:

- quote -

No.

- quote -

Yes.

But first, be certain that you really DO need to update.
Perhaps this 2004 return had some inordinantly high income
items which will not recur. If you're back down to "normal"
, or "usual" in 2005, don't bother.

IOW, do the math first to be sure.

ChEAr$,
Harlan Lunsford, EA n LA
Sun 20 Mar 2005

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"Lipin Telomar" <liptel[at]yahoo.com> wrote:

- quote -

As long as your withholding + estimated tax payments are at
least 90% of your 2005 tax liability or 100% of your 2004
tax liability, there's no penalty. It doesn't matter how
you apportion it between the two.

I always do it by adjusting withholding so I don't have to
remember to send in estimated taxes.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA

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I did a search on this group and couldn't quite find an
answer to my specific case.

Due to some circumstances, I owe a significant amount on my
2004 tax return and according to Turbo Tax will have to pay
estimated tax for my 2005 tax using form 1040-ES. The first
payment is due on April 15, 2005.

My questions are:

1. Do I still need to update my tax withholding through W-4
if I send the 2005 estimated tax payments?

2. Can I update my tax withholding through W-4 instead and
not sending the 2005 estimated tax payments?

Thank you very much. Lipin

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