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Financial Planning / Tax Strategies


Subject:  Re: oops...estimated taxes? Date:  9/15/2019  4:12 PM
Author:  billjam Number:  129567 of 130192

I've used the annualized method to avoid penalty but in recent years I've taken a different tack. I figure my safe harbor based on previous year's tax bill. Then I set the first three estimated to meet that safe harbor. If my income rises unexpectedly I can still make a fourth quarter estimated payment in January. But since I have home and car insurance plus Xmas and some charitable contributions to make in the fourth quarter I'm happy if I've gotten all the estimated tax paid and can skip the fourth payment. The extra cash can then go towards a little extra at Christmas or a trip somewhere warm in January.
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