The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: WHEN DO ESTIMATED TAXES APPLY Date:  3/6/2000  2:31 PM
Author:  Crosenfield Number:  31034 of 127753

If other issues haven't changed from last year--that is, if your taxes withheld from your regular job were at least as much as your 1998 income--105% if you are REALLY well paid--then you don't have a problem. You file your 1999 taxes by the due date, enclose a check for the tax on your windfall, and you and Uncle are square. If the windfall was in January 1999, you had a whole year to use the money, pay tax when due, and still square.
If you do not reach the safe harbor, it is tougher. There is a form to file with the tax payment explaining that you did not get the income until Dec 15, 1999. However, if this is the case you were supposed to pay the tax with your last quarterly estimate on Jan 15, 2000. If the windfall was in January and you did not reach the safe harbor, you were supposed to either get your regular employer to withhold more or file quarterly estimates.
In general, I work very hard to stay in the "safe harbor" so no surprises arise from capital gains.
Best wishes, Chris
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us