Comments on: Estimated Tax Payment Reminder

By: SingleGuyMoney

SingleGuyMoney — Sat, 12 Jan 2008 01:20:00 +0000

I just scheduled my payment today. I usually don’t pay them enough (on purpose) so I make an estimated payment to account for it.

By: Catrijn

Catrijn — Fri, 11 Jan 2008 19:46:57 +0000

If income is irregular, you can use the ‘annualized’ method to calculate what you owe each quarter. It’s a bit more complicated than the standard divide-by-four, but works out well for situations like the one you describe. In that case, you’d only be expected to make a payment for the fourth quarter (assuming the rest of your withholding is on-target).

By: Ryan S.

Ryan S. — Fri, 11 Jan 2008 18:51:43 +0000

Wow. The problems of being too successful. I don’t have to do this–yet. If my other projects take off, though…
-
Ryan
http://uncommon-cents.net/

By: kitty

kitty — Fri, 11 Jan 2008 15:56:58 +0000

Sold a bunch of stock with gain on the December 31st, but luckyly, safe harbor will apply… Next year might be different though.

Curious about something for next year. I’ve never had to pay estimated tax as last time I had large capital gains I’d happened to have higher salary than in previous years hence had higher withholding than in previous year – i.e. subjct to safe harbor rule. So I don’t know much about estimated tax rule. The way I understand it you are suppose to pay every quarter in equal installments based on how high you expect your income to be at the end of the year. But what if your income spikes at the end of the year unexpectedly. E.g. you suddenly decide to sell stock in December. Would they tell you – oh you were supposed to pay taxes throughout the year – or it’d be OK to just send a check by January 15th for the income received in December?

By: Blaine Moore

Blaine Moore — Fri, 11 Jan 2008 14:55:39 +0000

Yeah, I’m supposed to pay quarterly, but my business didn’t actually exist and they were trying to hit me for the quarterly payments all the way back to the beginning of 2007.

Thanks for reminding me to remind them that I don’t owe anything until 1st quarter 2008…