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Financial Planning / Tax Strategies
|Subject: Re: NY State estimated tax help||Date: 4/5/2011 10:24 PM|
|Author: ElleRB||Number: 112997 of 121252|
Patzer and Ira,
A million thanks for your quick replies and help. I filled out the IT-201 to the best of my ability and calculated my NYAGI.
In the process, I realized a few more details that seem key to getting to the bottom of my confusion. You are correct that in 2010 I was only a part-year NYC resident; in 2011 I will be a full-time resident. For the last quarter of 2010 when I was in NYC and filing estimated taxes, I seem to have underestimated what I owed, and therefore owed a penalty on my 2010 return. (It appears that I owed the penalty to the federal gov.)
1. It seems to me that I should be able to figure what I owe now for federal in 2011 based on what I should have paid, i.e. Line 18, "required payments" on Form 2210, given the Safe Harbor allowance (the amounts in Line 18 are approx. $1,130 for each quarter). Does that seem correct?
2. For NY State estimates, I want to make sure I understand what you're saying, Paxter: "If you know that you had much lower NY taxes in 2010 than you will have in 2011, the easy answer is to just use the 2010 taxes for your safe harbor amount." So, even though I was a part-year resident in 2010 and paid less than $150, I can still pay that each quarter of 2011 knowing that in actuality I owe more? It would be nice to keep more money myself throughout the year before 4/15/12.
Lastly, your answers to 1 and 2 may well solve everything for me. Just in case it's helpful, here's a snapshot of let's call it my "friend's" profile:
Freelance income: $50,500
Taxable interest income: about $2,700
SE health insurance: $3,400
Other combined business expenses: $2,500
Use 3% my 230 sq ft apartment for business use
Is there a ballpark estimated quarterly payment (federal and state) this person should expect? I ask because the individual's calculations (very likely flawed) are quite different from those provided by an accountant who was consulted, and we want to be Foolishly savvy about this.
Again, countless thanks.
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