The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: NY State estimated tax help||Date: 4/4/2011 9:59 PM|
|Author: irasmilo||Number: 112972 of 121061|
I am a young, novice investor who just moved to NYC. As I am new to being a self-employed 1099 worker and filing quarterly taxes, I would greatly appreciate help with the estimated tax payment I need to submit by April 18! Background: I get paid $50,000/year with obviously nothing withheld.
I'm running into two stumbling blocks that I can't seem to answer via Google search:
NY STATE (Form IT-2105-I)
1. Line 1, "amount of NY adjusted gross income." How do I calculate this? If I will solely be working in NY in 2011, is this amount simply my AGI that I estimated ($45,900)?
Get a copy of the 2010 NY IT-201 with instructions and complete it using your estimates of your 2011 income. NY starts with your federal AGI and then makes adjustments.
2. Line 25, "110% of personal income tax shown on 2010 income tax return," and Line 26, "the lesser of lines 24/25," which is the required annual payment. For me, if I calculated correctly, Line 25 is far, far less; so why did I have to fill out this entire form w/ all the calculations instead of just calculating 110% of my 2010 income tax? Perhaps I am using the wrong number; is the personal income tax "total NY State tax" (line 50) and "Total NYC tax" (line 55) of the state return (IT-203)?
Line 25 is 100% of the tax shown on your 2010 return. It's only 110% if your 2010 AGI exceeds 150K (75K MFS). You enter your 2010 NYS tax (IT-203, line 50) in the first column, your 2010 NYC tax (IT-203, line 52c) in the second column, and your 2010 Yonkers tax (IT-203, line 53 + line 54) in the third column.
Whether your projected 2011 income tax is more than your 2010 income tax depends entirely on the facts of your income situation. To the extent that some of your 2010 income was not taxable to NYS/NYC and all of it is taxable in 2011, and your federal income is relatively constant, then line 25 will be much less than line 24.
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|