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Re: Jan 16 - Estimated Taxes Due
Old 01-15-2007, 12:24 PM   #21
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Re: Jan 16 - Estimated Taxes Due

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Originally Posted by ERD50
Does the IRS hit you with any fines if the estimated payment is a few days late?
Technically yes - you start owing a penalty if it's late and it accumulates per day. This is normally calculated on the (2210? form) where you enter the estimated payments and the dates when you file the final 1040 for that year.

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Re: Jan 16 - Estimated Taxes Due
Old 01-15-2007, 12:35 PM   #22
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Re: Jan 16 - Estimated Taxes Due

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Originally Posted by audreyh1
I use the EFTPS system. But I don't set up automatic withdrawals, because I really do have to calculate my estimated taxes - they can't be predicted ahead of time.
I also use EFTPS, but I don't try to predict my actual tax liability. As long as you give them as much as last year's taxes, there's no penalty even if your liability is much higher this year. (Technically, it's 90% in some cases, and 110% in others, but you get the idea.)
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Re: Jan 16 - Estimated Taxes Due
Old 01-15-2007, 12:40 PM   #23
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Re: Jan 16 - Estimated Taxes Due

Quote:
Originally Posted by audreyh1
Technically yes - you start owing a penalty if it's late and it accumulates per day. This is normally calculated on the (2210? form) where you enter the estimated payments and the dates when you file the final 1040 for that year.

Audrey
Thanks, that is what I thought, was not sure though.

http://www.irs.gov/pub/irs-pdf/f2210.pdf

they pro-rate it; ((amount past due) x (days late))/365 x 6% or 7%.

That might be 25 or 50 cents if I was one or two days late last year. No 'group W' bench for me.

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Re: Jan 16 - Estimated Taxes Due
Old 01-15-2007, 01:59 PM   #24
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Re: Jan 16 - Estimated Taxes Due

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Originally Posted by wab
I also use EFTPS, but I don't try to predict my actual tax liability. As long as you give them as much as last year's taxes, there's no penalty even if your liability is much higher this year. (Technically, it's 90% in some cases, and 110% in others, but you get the idea.)
Yes I know. But I'm not about to pay them (110% of last years tax)/4 per quarter unless I actually owe them that much per quarter. The bulk of my income tends to be in the 4th quarter, and I don't want to pay any more any sooner than I have to! So I calculate quarterly and pay whichever is less!

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Re: Jan 16 - Estimated Taxes Due
Old 01-15-2007, 07:56 PM   #25
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Re: Jan 16 - Estimated Taxes Due

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and I don't want to pay any more any sooner than I have to!
Audrey
Ya gotta love that spirit!

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