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Each quarter stands alone, and income spikes in one quarter do not allow putting off
payment of taxes due to another quarter.

I don't know what this means either.

(I could interpret that to read that we made
more money in the first quarter and therefore we owe more taxes for the first quarter
than we will have paid in with the first quarter's Estimated Tax payment.)

Questions:
. Is 100% of our 2001 tax obligation correct?


Yes for you that appears to be the best

. Are we just lucky to have made the bulk of income in the first quarter and won't
have to pony-up for all those taxes until it catches up with the equal and timely
payments of the later quarters?


That's exactly correct. However, if your W-2 income stops and you have to make it up with more 1099 income in later quarters it will leave you with underpayments in the first quarters. The penalty is only simple interest on the underpayments at 6%. ed
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