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Author: hghcpa Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121114  
Subject: Re: Underpayment of estimated tax Date: 10/19/1999 8:50 PM
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This underpayment is the result of realized capital gains so if there is no way to avoid a penalty would it be allright just to wait until next April or should I add the extra amount in the Janaury payment? So far there is no way I can offset it with any more losses
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If the underpayment occured in the fourth quarter then you may be able to annualize the calculation and thereby make a fourth quarter payment without incurring a penalty. THIS IS A VERY COMPLICATED CALCULATION and you may want to consider the following alternative.

If you can have your withholding from your paycheck adjusted so that by the end of the year your federal tax withheld is greater than you prior year tax liability you could avoid any Est tax penalty..... assuming your AGI for 1999 is less than 150k.

Hope this helps

Pete


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