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Read the article in the FAQ on Estimated Taxes, paying special
attention to the portion on safe harbors. If an estimated tax requirement
arises during the course of the tax year, you start making estimated
payments at the next estimate due date, dividing the required payment
by the number of remaining estimated payments.

Phil Marti
Tax Preparer

I beg to differ, but if a requirement arises (such as from a large capital gain) do the following:
1. Increase your withholding only enough to equal last year's taxes (or 108.6% if your AGI was over $150,000) or 90% of this year's taxes, if lower. This extra withholding can be spread out through the year, or paid in a lump as late as December. Or
2. Pay one installment on the installment due date immediately following the event, enough to do the above.
Either of these will avoid a penalty.

If you divide the extra tax libility by the number of installment remaining and pay them as Phil suggests you will almost certainly overpay, and you will incur a penalty on earlier quarters depending on how much you overpay or and possibly later quarters if you underpay, and require completion of Schedule AI to possibly avoid even larger penalties.

Paying an estimate or estimates should be avoided in favor of overwithholding, but if paid must cover the tax liaibilty to date to be effective (not spread out through the remainder of the year), and then requires completion of Schedule AI and calculation of any penalty by the taxpayer to avoid further penalties.
"Tax liability to date" includes accumulative "safe harbors" amounts. Paying 4 equal and on time installments would be O.K. ( as good as withholding) but that only works if the event was in the first quarter. Ed
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