The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Penalty for underpayment due to capital gain||Date: 10/21/1999 12:13 AM|
|Author: troyman||Number: 19900 of 121313|
[ With the increase in salary it looks like your withholding this year will just about equal 1998 taxes. Make sure it does with an extra withholding if necessary, then nothing more due until you file in April. Your safe harbor is 100% of 1998 taxes since your AGI waas under $150K.]
Edcosoft and BladeXrunners,
Much thanks for your assessments of my situation!
If I understand them correctly, and given that:
1) my 1998 withholdings through my employer amounted to $18,277
2) my 1999 employer withholdings to date are $16,498 through 19 paychecks (semi-monthy 7th and 22nd of each month) with 5 paychecks to go
3) my current Federal withholding amounts to $800 per paycheck (since I have maxed out on 401K contributions at $10,000)
1) at the current clip, my 1999 withholdings will amount to $20,498
2) $20,498 is 112% of $18,277
3) AND I WILL BE IN THE SAFE HARBOR WITH NO ESTIMATED TAX PENALTIES FOR 1999!!!
As a side…since I am not married and earned more than $75k, isn't my safe harbor amount actually 105%?
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