ed wrote:

- quote -

paper file with the state. Hadna thought that far ahead. (grin

C$,
H

--
<< ------------------------------------------------------- > << 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 -


I am not yet 70.5 years old and therefore am not yet in the mandatory
withdrawal stage of my IRA. But I do have income from other
investments. I will probably make use of this when I start my
withdrawals.

Jeff

--
<< ------------------------------------------------------- > << 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 Apr 29, 10:36*pm, Harlan Lunsford <hnslunsf...[at]bellsouth.netwrote:
- quote -

Harlan: What do they do about returns that can't be e-filed? Glad I
don't live there but then, maybe the climate or some other attributes
make it worth while (the reverse of my option to withhold but you'r
unable to e-file.

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. > << ------------------------------------------------------- >

ed wrote:
- quote -

Even those over 70 it's still a valid planning tool.
- quote -

Well, in my case, my state mandates efile for all returns filed by my
office, and that includes my own.

ChEar$,
Harlan

--
<< ------------------------------------------------------- > << 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 article <7ad2633d-5866-4043-93ce-e59e9d649e05[at]f63g2000hsf.googlegroups.com> ,
ed <edcosoft[at]sbcglobal.net> wrote:
- quote -


E-filing is separate and distinct from paying, and you can e-file
in January but not pay until April 15th.


Arguments for efiling - other than saving postage and less
paper -- include a postmark that holds up better than even
a certified mail receipt, and not having to rely on seasonal
temps who are data entry clerks getting everything right.
Mistakes crop up far too frequently.


And far too often a paper return will arrive unsigned and treated
as not filed.
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

"ed" <edcosoft[at]sbcglobal.net> wrote in message
news:7ad2633d-5866-4043-93ce-e59e9d649e05[at]f63g2000hsf.googlegroups.com...
- quote -

Filing and payment are independent events. You can efile early and know that
your return is filed and pay your tax liability on April 15 (by check or
electronic draft). You get the best of both worlds.

Ira Smilovitz

--
<< ------------------------------------------------------- > << 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 Apr 29, 6:21*pm, Harlan Lunsford <hnslunsf...[at]bellsouth.net> wrote:
- quote -

The "willing to use" is because before age 70 an IRA withdrawal is
voluntary and maybe he wants to keep the money in his IRA.. As for e-
filing, UNLESS you are due a refund, WHY? So its cost 41 cents, or
maybe a couple of $$$ to get a receipt, deduct that cost from the
other savings!.

Consider that taxpayer has used this ploy to pay 90% of current
year's *estimated* tax (or more) , or the amount of last year's
tax), he OWES the IRS so what's the hurry to e-file? I have yet to
e-file because we UNDERPAY the minimum acceptable amount and pay the
other 10% or more next April.

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. > << ------------------------------------------------------- >

ed wrote:
- quote -

(snipped....)

After my previous reply one thing came to mind as to why this won't
completely work.

If federal withholding is more than 50% of gross
distribution, then electronic filing is not allowed and one would be
relegated to filing the old fashioned way. And I'm an ardent supporter
of efiling.

But of course it could be partially used with precise advance planning.
And who better than a tax pro for this? (grin)

ChEAr$,
Harlan Lunsford, EA n LA

--
<< ------------------------------------------------------- > << 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 article <E9OdnX02JK45NYrVnZ2dnUVZ_gidnZ2d[at]comcast.com> ,
joetaxpayer <joetaxpayer[at]nospam.com> wrote:
- quote -


Just remember, if you have more than 50% of the distribution
withheld for taxes, you can't efile.
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

--
<< ------------------------------------------------------- > << 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 article <xjNRj.24948$3v1.21038[at]bignews3.bellsouth.net> ,
Harlan Lunsford <hnslunsford[at]bellsouth.net> wrote:

- quote -


Great idea - I like it - get rid of estimated payments altogether.

Not only does this make the paperwork easier, I can keep (and earn
interest) on my money until the last minute.

Does anyone see any downside to this idea?

With my Charles Schwab IRA, to make electronic transfers to my bank
account I had to give them preset percentages for federal and state
withholding, but I found out, if I request (online) that they cut a
check and mail it to me (free of charge), that I can enter the
percentage of withholding on the fly, just for that check.

--
-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. > << ------------------------------------------------------- >

Harlan Lunsford wrote:
- quote -

The Schwab site allows Federal withholding from 10% to 100% on an IRA
distribution. So if, for whatever reason, 10% of the RMD is too much,
you can do this in two moves. Take 10X your tax burden out, then take
the rest with no tax withheld.

As far as ed's "this presumes you are willing to use an IRA
distribution", well, if you have an RMD, the math is no different, not
like you can take out less money. If the RMD won't cover your taxes,
that's another story.
Joe
www.blog.joetaxpayer.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 (2007) - All rights reserved. > << ------------------------------------------------------- >

ed wrote:
- quote -


Then you're saying that T Rowe in Bal'mer (my favorite as well) will
withhold a set dollar amount instead of a predetermined percentage like
15,20,25...?

That's a REAL good idea, ed.

ChEAr$,
Harlan Lunsford, EA n LA

--
<< ------------------------------------------------------- > << 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 Apr 29, 11:33*am, "rick++" <rick...[at]hotmail.com> wrote:
- quote -

Jeff
..: Are you aware of the special break you can give yourself as a
retiree? Instead of paying installments don't do anything all year
and then in December withdraw your RMD from your 401K or IRA and have
the trustee withhold the amount of your last year's tax (or at least
90% of what you are certain will be your current year's tax). If you
are under 70 this presumes you are willing to use an IRA distribution
instead of paying your taxes with after tax dollars. Also, before
doing this call your trustee and make sure they will withhold and how
long it takes them because it must be withheld from a current year's
distribution.

Actually any source of income that you can withhold from will work,
even Social Security but you would be paying some each month instead
of investing that to pay in December. I do this with T.Rowe Price
verbally. I call them to distribute the amount of my RMD and withhold
the amount I need and send me the remainder. Painless, convenient, no
paperwork, no penalties.

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. > << ------------------------------------------------------- >

- quote -

I fill out the 2210 penalty form to tell me what I owe
any given quarter.
My investment income is irregular.

--
<< ------------------------------------------------------- > << 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 -

Thank you all.

I am retired and therefore do not have withholding, just estimated
payments.

Jeff

========================================= MODERATOR'S COMMENT:
If you receive a form 1099-R each year from an IRA or 401k or a
pension or annuity, you can send them a form W-4P to request they withhold
federal income tax for you. If you receive social security benefits you
can submit form W-4V to SSA.

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

"Jeff" <Willliam[at]naol.com> wrote in message
news:_fkRj.58764$QC.34449[at]newsfe20.lga...
- quote -

confusing and paid 100% just to be sure; but don't forget that your
withholding counts toward it. If you get W2 income figure that in.

--
<< ------------------------------------------------------- > << 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 Apr 28, 4:41*pm, an_ordinary_guy_...[at]hotmail.com (Bill) wrote:
- quote -

Bill: The "within $1,000 of" safe harbor is when you have
withholding only, not estimates as this poster is doing. The normal
equal and on time payments are 1/4 of last year's tax (110% of last
year if last year's AGI was over $150,000), or 1/4 of 90% of this
year's actual tax.

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. > << ------------------------------------------------------- >

Willliam[at]naol.com (Jeff) posted:

- quote -

This is not universally answerable with a simple statement, other than
that you should pay as close to the amount you will owe for "next year"
(i.e., 2008) as possible.

The traditional "safe harbor" applies to taxes which are _withheld_ --
and that would be to have the amount _withheld_ that is equal to 100% of
your previous year's total tax bill.

However, if you are paying only estimated taxes (rather than
withholding), the issue is more complex -- as there are periodic payment
benchmarks related to income realized within the various payment
periods. The full story is covered in Pub 505 -- but it would not be
unreasonable to suggest you will generally avoid penalties if your total
estimated tax payments are within $1,000 of your 2008 total taxes due,
and if your payments have been made in a timely manner throughout the
year (i.e., by April 15, June 15, Sep 15 and Jan 15, 2009), and all four
were roughly equal.

Again, I stress this is a simplification -- intended as a general
guideline, only.

Bill

--
<< ------------------------------------------------------- > << 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 article <_fkRj.58764$QC.34449[at]newsfe20.lga> ,
"Jeff" <Willliam[at]naol.com> wrote:

- quote -

100% of your 2007 tax.

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

How much should I pay for estimated Fed taxes so that I do not owe a
penalty if my income next year is higher than in 2007?

Is it 100% of the amount of tax paid for 2007 or some other calculation?

Thanks.

Jeff

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >