In article <nIeBj.5856$7d1.4627[at]news01.roc.ny> ,
"Taxlover" <taxlover[at]yahoo.com> wrote:

- quote -

No, you are not.

You file it in 2008 after the fact, not now.

The IRS expect 4 equal estimated payments. If you have unequal
estimated payments because of unequal income throughout the year, you
can file the form 2210AI annualized method with your 2008 taxes to show
why your payments were not equal.

--
-Ernie-

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

"rick++" <rick303[at]hotmail.com> wrote in message
news:347203df-e873-4cf4-841a-17c69bb6c888[at]59g2000hsb.googlegroups.com...
- quote -

will no more than 5% of my 2007 earnings, the refund would be pretty big.
Am I reading it correctly?

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

On Mar 7, 10:30 pm, "Taxlover" <taxlo...[at]yahoo.com> wrote:

- quote -

Sure. You computer 2210 for income up to March 31, June 30,
August 31, and December 31 and pay the minimum to avoid penalty.

You'll probably overpay slightly, because brackets might be raised
a small amount for 2008 and arent announced until October or November.

Note that the "equal installment method" works better if you expect
income scewed toward the first half of the year. The annualized
method is better for second half income.

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

On Mar 8, 12:34*pm, DF2 <replyvia[at]newsgroup_please.com> wrote:
- quote -

shojld use the ANnuyalized Income Method. You can get a *2210 tax
calculator* on the web that does all the calulatiions for you and
provides all the line number entries for the 2210 and its AI.
If you are not making much income stating itit quarterly shouldn't be
such a big job.

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 (2007) - All rights reserved. > << ------------------------------------------------------- >

In misc.taxes.moderated, John Levine wrote:

- quote -

I did that once when a company got bought-out in December. I decided
filled out 2210 in a tax program entering a lot of data. Then it
wanted a whole other set of data. You have to split your income into
quarters, and you have to split your deductions into quarters. Guess
what? Some of the deductions happened to fall into Q4. And my
methods were not all that efficient Since I had "invested" so much
time into form 2210 already, I went ahead. There might have been a
third phase. Not sure.

Well, since extra income gets taxed at a higher rate, there was
still a penalty. So I think I might have paid $20 in penalty vs the
$30 I would have paid if I had not gone thru that.

- quote -

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

- quote -

Each quarter you extrapolate your full year income from your income to
date, then refigure the tax due, and pay enough so that payment N
brings you up to N/4 of what the total tax will be. If the payments
end up being notably uneven, when you file your tax return you include
form 2210 including schedule AI to explain why.

Publication 505 sort of explains this, as do the instructions for forms
1040-ES and 2210.

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

In misc.taxes.moderated, Taxlover wrote:

- quote -

For the US federal income tax, if you pay no estimated payments but
you owe less than $1000 tax, there will be no penalty.

If your tax is more than $1000, I guess your investment income was
not negligible.

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

Last year I sold my business and had a huge, but unique, income.
This year I will have no withholding and negligible income from conservative
investments. I am unsure what to do about estimated tax payments.

On the one hand, I don't want to pay a lot, only to get it back in a refund;
but I also don't want to pay a penalty for underpayment.

My inclination is to make tiny quarterly payments, increasing them if
prospects inprove. If the year turns out well I will have penalties, but I
guess I will be glad to see them.

Is there a proper way to handle this?

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >