Comments on: The pain of paying estimated quarterly taxes. http://daysleft.com/31/the-pain-of-paying-estimated-quarterly-taxes/ How many days left to your retirement? Mon, 04 Jan 2010 04:49:51 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Linda Rowland http://daysleft.com/31/the-pain-of-paying-estimated-quarterly-taxes/comment-page-1/#comment-92 Linda Rowland Mon, 19 Jan 2009 02:29:57 +0000 http://www.daysleft.com/31/the-pain-of-paying-estimated-quarterly-taxes/#comment-92 I retired 9-1-08 from a state of Georgia position as a registered nurse and am currectly working under contact 2 days a week. I need to pay social security and federal and state taxes but do not know how to do this. Is there a website or publication that will help me achieve this as I do not want a penality. Please let me know where I can find this data. Thank you. I retired 9-1-08 from a state of Georgia position as a registered nurse and am currectly working under contact 2 days a week. I need to pay social security and federal and state taxes but do not know how to do this. Is there a website or publication that will help me achieve this as I do not want a penality. Please let me know where I can find this data. Thank you.

]]> By: Engineer http://daysleft.com/31/the-pain-of-paying-estimated-quarterly-taxes/comment-page-1/#comment-20 Engineer Fri, 03 Aug 2007 02:53:45 +0000 http://www.daysleft.com/31/the-pain-of-paying-estimated-quarterly-taxes/#comment-20 I'm not in the situation of having to pay estimated taxes, and avoid it by adjusting my withholdings from my salary to cover other income. I would recommend studying the IRS forms about how it is determined whether or not you under withheld and if so how the penalty is calculated. I believe that you are not charged a penalty if: -- you make your estimated tax payments on schedule or -- your quarterly estimated payments are at least 22.5% of your actual taxes for the year. But don't take my word for it. Check it out on www.irs.gov, starting with http://www.irs.gov/publications/p505/index.html. If you're sure your income for the year will be reduced, you may be able to reduce the next two estimated payments. If you get an unexpected windfall late in the year, you may have to pay a penalty. I’m not in the situation of having to pay estimated taxes, and avoid it by adjusting my withholdings from my salary to cover other income.

I would recommend studying the IRS forms about how it is determined whether or not you under withheld and if so how the penalty is calculated.

I believe that you are not charged a penalty if:
– you make your estimated tax payments on schedule
or
– your quarterly estimated payments are at least 22.5% of your actual taxes for the year.

But don’t take my word for it. Check it out on http://www.irs.gov, starting with http://www.irs.gov/publications/p505/index.html. If you’re sure your income for the year will be reduced, you may be able to reduce the next two estimated payments. If you get an unexpected windfall late in the year, you may have to pay a penalty.

]]>