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fleg: Your methodolgy is flawed and TT is not doing you any favors. They can't annualize and I doubt if they figured any AMT correctly in your instance. They discontinued their "estimated Tax" program because all it did was divide last year's tax by 4, wake you up on April 15 and preprint your 1040-ES's.

You did't say what TT you are using but what did it use for a AMT Exemption? Last year's? Now you're multiplying AGI by 4, And it appears you're NOT annualizing Schedule A Dductions before calculating tax, and as far as I can see are not taking the 0% 2008 tax advantage for Qualified Dividends and LTCG.

Then after calculating the annual tax you should multiply it by .225, not divide it by 4, and for the second quarter the factor is.45 not 5/12 (which is .4167). If you did this all correctly you wouldn['t blanch at taking the Foreign Tax Credit.

I suggest you get a form 2210 and USE the AI for your calculations, or read Publication 505, which has all the worksheets to do this, except for the AMT.
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