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Last year we owed no taxes--all were offset by various credits.

Last month and this month, my husband's received a couple of bonuses that have effectively doubled his income for tax year 2001 vs. 2000. (A one-off.) Do we have to pay estimated tax?

kse4
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Last year we owed no taxes--all were offset by various credits.

Last month and this month, my husband's received a couple of bonuses that have effectively doubled his income for tax year 2001 vs. 2000. (A one-off.) Do we have to pay estimated tax?

kse4


No. Just make sure you have the money invested somewhere to pay the tax bill in April. I'd put it in a money market fund.
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Please indulge my curiosity: What's a "one-off"?
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What's a "one-off"?

That had me confused too -- I thought something was missing.

After fruitless web searches, I went to <www.m-w.com/cgi-bin/dictionary> and found:

Main Entry: one-off
Pronunciation: "w&n-'of
Function: adjective
Date: 1934
British : limited to a single time, occasion, or instance : ONE-SHOT, UNIQUE

HTH,
Phooley in Phoenix
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Last year we owed no taxes--all were offset by various credits.

Just to make sure there's no confusion, as long as line 57 of your 2000 1040 was zero, you don't have to make 2001 ES payments, regardless of your ultimate 2001 liability.

Phil Marti
VITA Volunteer
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