donheff
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
For decades DW and I used accountants for our income tax filings. DW is a partner in a Chicago law firm with earnings in several states, late year bonuses, last minute K1s, etc., and the professional help seemed important. Last year she semi-retired and dropped down to about 10% of her previous income with a fixed monthly draw. Instead of the previous quarterly filings I increased the Federal and DC withholdings on my pension to include her income and self employment (SSA) taxes. It worked fine this year and I was able to do it myself with Turbo Tax.
But here is my question. This year DW is somewhat active on a case. If her level of effort continues she will probably get an end of year bonus that screws up my withholding projections. Will we be able to simply file a single quarterly for the final quarter to make up for the bonus? I had some vague memory that if you use quarterlies you were supposed to file all four. I would just jack up my withholding for the final period to cover the extra tax but her firm tends to do bonuses at the last minute, to late for me to get the increase in.
Edit: nevermind this post. It just dawned on me that if I pay 100% of my 2010 taxes I won't have a penalty. I can't figure out how to cancel this thread or I would do so.
Edit on the edit: see my reply to Martha -- this could just be passing the issue on to 2012. I still need to know if I can file a single quarterly.
But here is my question. This year DW is somewhat active on a case. If her level of effort continues she will probably get an end of year bonus that screws up my withholding projections. Will we be able to simply file a single quarterly for the final quarter to make up for the bonus? I had some vague memory that if you use quarterlies you were supposed to file all four. I would just jack up my withholding for the final period to cover the extra tax but her firm tends to do bonuses at the last minute, to late for me to get the increase in.
Edit: nevermind this post. It just dawned on me that if I pay 100% of my 2010 taxes I won't have a penalty. I can't figure out how to cancel this thread or I would do so.
Edit on the edit: see my reply to Martha -- this could just be passing the issue on to 2012. I still need to know if I can file a single quarterly.