iI have read the FAQ but still have questions. Bear in mind that I am looking at taxes for next April,(tax year 2000) Since I have retired this year, I will have income from receipt of my retirement in company stock. Also expect to sell some of that stock later in the year incurring LTCG with no withholding in either case. Hence, estimated taxes are due. Am I understanding correctly that I need to pay quarterly, an amount equal to my total tax liability for year 1999? Will this prevent a penalty even though I may actually owe more at the end of the year? Thanks That's 1/4 of your 1999 tax liability each quarter. If you expect year 2000 taxes to be lower you can try the other methods: 1/4 of 90% of 2000 estimated taxes, or actually compute the annualized income tax liability for each quarter. We have a calculator to do this on www.edcosoft.com.You should get Form 2210 to see how this all works. ALSO you mention taking income for receipt of company stock. If you were born before 1936 you should get Form 4972 and see if 10 year averaging on a lump sum distribution would benefit you. Ed
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