Yes, pay $1500 each quarter. That is sufficient to meet the
"last year's tax" safe harbor (or $1650 if your AGI was over
$150K last year).

P.S. The underpayment "penalty" is only simple interest of 7%.

ed

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"valentino" <aturchin45[at]hotmail.com> wrote:

- quote -

We'll assume your 2005 AGI was under $150,000.

If your four timely equal (you can prepay) 2006 installments
are at least as much as your 2005 total tax, that's all you
need to avoid a penalty. See IRS Publication 505.

Your state may have different rules, so check there. In MD,
it's 110% of prior year's tax.

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

valentino wrote:

- quote -

Yes, as long as you pay the balance by April 16

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

I retired and pay estimated taxes
Last year I paid $ 6000 in federal taxes.
This year it looks I have to pay $ 12000 in taxes.
Can I pay estimated taxes just more than 6000 and still not
pay underpayment penalties or interest?

Thanks, Alex

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >