Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
What is the best and easiest way to estimate what my tax liability will be for this year? I'm not particularly worried about having to pay additional but don't want to get into a penalty situation.

The "easiest" way is to use the safe harbor provision: pay in for taxes for 2003 what your total tax liability was for 2002. This will result in paying in a bit more, probably, than what you'll owe, but given the very low interest rates now that probably won't matter much.

If you haven't been paying enough in quarterly estimated tax payments (for April 15 and June 15 payments), then adjust withholding on DW's income to make up the difference. Estimated tax must be paid in equal and timely payments to avoid penalty; you can't make it up by paying more in the September and/or January payments.

Karl, Tax-Aide volunteer


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.