[Hidden-tech] Question re: finances

[Jan Werner]

This is almost correct.

You are in theory subject to penalties if at any time during the year 
the accumulated estimated payment is less than 90% of the amount due at 
that point (1/4 of the final amount), however, you will escape penalties 
for underpayment if you have paid at least 1/4 of last year's taxes each 
quarter and make up any amount due by April 15 of next year, which is 
the easy way to be safe.

On the other hand, if your estimates change substantially during the 
course of the year, you really should adjust your quarterly payments to 
account for the best expectation at the time each payment is made.

The IRS won't complain if you pay too much at the beginning of the year 
and reduce payments later on, because it is their gain. On the other 
hand, if you start slow and pick up later in the year, you can still 
avoid penalties for underpayment by demonstrating this on form 2210, 
although you should keep good records for your receivables, because you 
can expect the IRS to grumble some before they let you off the hook.

Jan Werner
______________

Rikk Desgres wrote:
>    ** Be a Good Dobee and help the group, you must be counted to post .
>    ** Fill out the survey/skills inventory in the member's area.
> 
> 
> If you paid $1000 in taxes (not last years estimates but total taxes) last
> year you must pay as least $250 each quarter this year even though you may
> owe more. In April you pay the difference. Next year you pay 100%/4 each qtr
> equal to this years total.
> 
> Rikk