UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Next Thread
Author: arrete Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 756497  
Subject: quarterly tax payments Date: 1/24/2000 10:31 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I am a bit confused about estimated tax payments. Does the gov't really care whether you've made four quarterly estimated tax payments, or simply that the tax money is paid by year-end?

I know that in theory it's supposed to be a "pay as you go" system, but in practice I don't see how they would know if I received non-salary income (e.g. stock sales, option exercises, IRA distributions) throughout the year or just in December.


In the case of stock sales, presumably they have your schedule D stating when you took your gain.

I know that in the case of earned income, for instance consulting, if you get nothing for the 1st three quarters and then in the last you get lots, you have to include a statement to that effect with your tax form or else you may get penalized. The IRS wants the quarterly tax payments to be evenly distributed, if possible, (meaning they want your money as soon as possible).

arrete
Print the post Back To Top
Author: arrete Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2610 of 756497
Subject: Re: quarterly tax payments Date: 1/26/2000 9:21 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
I am a bit confused about estimated tax payments. Does the gov't really care whether you've made four
quarterly estimated tax payments, or simply that the tax money is paid by year-end?

I know that in theory it's supposed to be a "pay as you go" system, but in practice I don't see how they would know if I received non-salary income (e.g. stock sales, option exercises, IRA distributions) throughout the year or just in December.


I have found a somewhat old post (#63) by TMF Taxes on the Inheritance Strategies board that is chock full of info about estimated tax payments. Useful for anyone that has the priviledge of paying those pesky things.


http://boards.fool.com/Message.asp?id=1040009000017000&sort=id


arrete

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Next Thread
Advertisement