Some minor corrections to the above posts:

Sumap10: You can't average (use form 4972) for a lump sum distribution from an IRA.

debra: capital gains, per se, and dividends are not taxed at AMT rates even if she is subject to AMT *omputations*, but she obviouly doesn't have enough income to get into AMT *tax* territory.

The calculator to estimate current year income using the new May 2003 tax rates on http://www.edcosoft.com/qitc.html does NOT require registration. The FREE Demonstrator spreadsheet will do that and provide all the safe harbors AND compute your first Installment on the Annualized Income Method. Registration is only required to compute the last three installments of AI and/or be notified of any revisions.

I spent about an hour last night looking for other May 2003 rate estimators on the web and could not find ANY others using the new rates, let alone that would compute AI installments. Google comes up with about 10 pre-May 6 estimators but couldn't find edcosoft as an *estimator* , probably because it wasn't meant to estimate because it does the AI from actual quarter income figures, not annual estimates as the others did. It is able to compute annual taxes because that is necessay for the current year tax safe harbor which it will compute. Thanks for the mention, however. ed