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Last year(2000) I had a spike in income due to some large capital gains, so I owe a substantial amount. However this year(2001) I am going to owe nothing as I will have losses plus we just purchased a new house so we'll have substantial interest deduction. Now the question, does my 2001 withholding still have to equal my 2000 tax due even though I expect with all the deductions to owe very little if anything.
Thanks,
Kevin
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cLast year(2000) I had a spike in income due to some large capital gains, so I owe a substantial
amount. However this year(2001) I am going to owe nothing as I will have losses plus we just
purchased a new house so we'll have substantial interest deduction. Now the question, does my
2001 withholding still have to equal my 2000 tax due even though I expect with all the
deductions to owe very little if anything.


No if your withholding is 90% of tyhe total 2001 taxes due, or within $1,000 of it there is no penalty. See Form 2210. ed
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