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Financial Planning / Tax Strategies


Subject:  Re: Estimated Taxes Date:  2/16/2000  11:59 AM
Author:  Crosenfield Number:  28839 of 127533

Your choice is to increase your 2000 withholding to cover the amount of your 1999 taxes or to file quarterly estimates. You CAN have your employer
eliminate all deductions and take out an extra amount
from each paycheck, an amount specified by you. Then assuming that for 2001 your income will be more normal, you would go back to your withholding the way it is now, if you do it that way. If your bonanza
comes at midyear, that saves you making a quarterly
estimate before you get your bonanza. You CAN file an extra form explaining to the IRS that you didn't get the money until Dec. 20 or whatever, but that would be yet more trouble.
If the extra money doesn't come too late in the year, it would seem to me that adding to your withholding for the rest of the year would be my choice. Best wishes, Chris

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