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Author: KentonKelly Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121144  
Subject: Re: taxing question Date: 7/25/1999 12:00 PM
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Ferdie-

You still have plenty of time to make amends, so to speak. You can either:
1. adjust your federal withholdings amount in your paycheck for the remainder of the year,
2. or you can begin paying estimated taxes.

First step will be to come up with a rough idea of just how much in the way of additional taxes you will owe. Then go from there.

You can avoid penalties by ensuring you have withheld an amount:
1. equal to 90% of this year's tax,
2. equal to 100% of last year's tax (if AGI > $150k, its' 110%), or
3. paying installments under the annualized installment method.

Since you've indicated that this year's tax will be substantially higher than last year's, and I'm assuming you don't want to write a huge check on 4/15/00, I'd shoot for the 90% of this year's tax. Key is get started on it now and get it accomplished by 01/15/00.
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