Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Washu!: IF you can figure it out the best strategy is
to have extra withheld in December, which is averaged
out as if you had it deducted all year long. If you withhold 90% of final tax--no 2210--no penalty. If you withhold 100% of last year's tax--no 2210--no penalty. If you miss it by less than $1,000--no 2210--no penalty. If you miss, maybe you can avoid a penalty on the first 3 quarters with the Standard Method, or at worst with the Annualized Method, or just pay the small Penalty.
Can't answer #1 or #3 but at 7% penalty, if you make that much day-trading, don't worry about it. Main thing is DON'T make installments if you can withhold as they limit your options. See Form 2210 instructions. Ed
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
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.
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.