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Financial Planning / Tax Strategies
|Subject: Re: Lack of AMT patch by early Jan||Date: 12/29/2012 12:40 PM|
|Author: DeltaOne81||Number: 117234 of 122324|
If I understand you've made no payments other than withholding during 2012 and you're wondering whether you should make an ES payment that would bring you to 100% of 2011 in order to avoid an underpayment of ES penalty.
I was actually thinking of making a payment to bring me to 100% of 2012, not 2011. But otherwise yes.
It's too late to completely avoid a penalty, which is calculated as interest from the due date to the date actually paid. Thus you would owe the penalty on the first three payments regardless of what you do now. The rate is currently 3% per annum. I believe it's been constant throughout the year.
But if I make the estimated payment and don't owe anything come filing time (even get a small refund perhaps), I still have to pay a penalty because the 1st three quarters were low? Or no?
Even if I still do, sounds like it'd still be worth it to avoid a portion of the penalty, don't ya think?
I may be completely off base but I thought AMT patch for 2012 was enacted in 2011. What is now needed is an AMT patch for 2013. The annual game the clowns/cowards in Washington play.
Nope, in 2010 the patch was enacted for 2010 and 2011. No patch was ever enacted for 2012. Everyone was waiting for the election to see what happened.
A few sources to back that up:
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