UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next
Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 78143  
Subject: Re: Estimated taxes Date: 2/12/2002 9:31 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
You can always use the Annualized Income method for paying your estimated taxes. It's a bit more complicated than dividing last year's tax by 4, but not that bad.

The gist of it is that just before you make each estimate payment you look at your taxable income so far. Your estimate payment is then based on that income alone. That way, a surprise distribution from your mutual funds in December won't be penalized, as long as you make the increased estimate in the following January.

For all the nitty-gritty details, I'd suggest you head over to the Tax Strategies board and ask your question there. You should get the attention of edcosoft who is the resident guru on the annualized income estimates. If you want to do a little reading on your own, take a look at form 2210, schedule AI.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Saul's Investing Discussions

China's Stock Market: Like the Lottery?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.