- quote -

The IRS doesn't care. You can increase your withholding
instead of making separate estimated tax payments. See the
instructions to Form 1040-ES, in the middle of the middle
column on the first page under the heading "Increase your
withholding." You can increase your withholding by reducing
the number of withholding allowances claimed, or through a
voluntary withholding agreement, by filing a new Form W-4
with your employer.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"Bert Hyman" <bert[at]iphouse.com> wrote

- quote -

Either way is fine, as long as enough is withheld or paid by
estimates.

--
Paul Thomas, CPA
paulthomascpapc[at]bellsouth.net

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Bert Hyman <b...[at]iphouse.com> wrote:

- quote -

Because Withholding is applied equally to all tax quarters,
whereas Installment, or Estimate, payments can not be
applied retroactively, you are always safer to pay
withholding than installments.

ed

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Bert Hyman <bert[at]iphouse.com> wrote:

- quote -

No. I've always preferred adjusting withholding, as I can
set it and forget it.

Another inconvenience of quarterly payments is that the IRS
expects you to pay in each quarter for the excess income of
that quarter. But if you use extra withholding they don't
care which quarter the extra income was earned.

Finally, don't forget to take advantage of the "safe harbor"
rule. There's no underwithholding penalty if your
withholding for year N is at least your total tax for year
N-1 or 90% of your tax for year N. So if you think your
income is going to go up, all you have to do is arrange for
your withholding to match your previous year's tax, you
don't have to estimate the actual extra income.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA
*** PLEASE don't copy me on replies, I'll read them in the group ***

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"Bert Hyman" <bert[at]iphouse.com> wrote:

- quote -

I can think of any number of problems I'd happily trade you
for. <g
- quote -

No. If you care about what TT thinks, tell it about the
increased withholding and it won't bug you about ES
payments, but I wouldn't bother. Just do what you were
planning on doing.

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

I had some unavoidable capital gains this year, and I'm
likely to have the same for the next few years. This year's
caught me a bit by surprise and I knew I'd be owing
additional taxes, so I'd planned on adjusting my withholding
to avoid future penalties.

But, after cranking it through TurboTax, it tells me to make
quarterly payments, the sum of which pretty much match what
I'd planned on having withheld.

Does the IRS care if it gets the money via withholding or
quarterly payments, so long as it gets it?

I really don't mind sitting down four times a year and
writing a check, if I know I'm really going to owe the money
come April.

--
Bert Hyman | St. Paul, MN | bert[at]iphouse.com

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >