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Financial Planning / Tax Strategies
|Subject: Re: Estimated Taxes||Date: 8/10/2001 8:19 AM|
|Author: irasmilo||Number: 53224 of 125863|
2) Federal Tax Due - W-2 Witholding - credits - Total Estimated Tax paid anytime during 2001 must be greater than or equal to 90% of Total Federal Tax Liability
This is worded incorrectly, though it's clear you have the concept right.
It should be: "Federal Tax Due - W-2 Withholding - credits - total estimated tax paid (up to 1/15/2002) must be less than or equal to 10% of Total Federal Tax Liability.
Also, for this exception to apply, (1) you must have made equal, timely estimated tax payments, or (2) you must use the annualized income worksheets to demonstrate that you met the safe-harbor each quarter.
You don't have to meet the same safe-harbor exception each quarter, you can choose the safe-harbor which is best for your set of circumstances.
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