Jan 16 - Estimated Taxes Due

[REWahoo]

Just a reminder for those who pay quarterly estimated federal taxes....Tuesday is 4Q 2006 due date.

 

[samclem]

Thanks for the reminder! Time to go check to see if I set up the automatic withdrawals properly.

 

[Cut-Throat]

Just a reminder for those who pay quarterly estimated federal taxes....Tuesday is 4Q 2006 due date.

You do seem to be doing a lot of housecleaning today!

You can punch out now, it's well past cocktail hour!

 

[Nords]

You do seem to be doing a lot of housecleaning today!
You can punch out now, it's well past cocktail hour!

Yeah, thanks a lot for that cheerful little reminder!

Oh, right, paying Roth IRA conversion taxes out of taxable funds is supposed to be a good thing. Sure. I feel better now...

 

[audreyh1]

Already scheduled it!

It always feels like the IRS brings out a huge vacuum cleaner and sucks way too much out of our bank account!

Funny how it always happens first thing in the morning!

Audrey

 

[unclemick]

Just a reminder for those who pay quarterly estimated federal taxes....Tuesday is 4Q 2006 due date.

Yep - plus the weatherman says more snow - a good day to pencil up some figures and send them a check.

heh heh heh heh

 

[REWahoo]

You do seem to be doing a lot of housecleaning today!

You can punch out now, it's well past cocktail hour!

DW tells me I need to try to do as much as possible during one these brief lucid periods...

 

[cute fuzzy bunny]

Just a reminder for those who pay quarterly estimated federal taxes....Tuesday is 4Q 2006 due date.

ha ha ha...*snork*

As if...

 

[BUM]

I'm lousy at meeting these dates on time. I think I have a way around paying estimated taxes. A few years ago I had a nice refund due. I had the amount applied to future taxes.
Now that I've ER'd I'm in the same bracket as the working poor. The tax hit is small so the balance should last awhile. Last year I added to it in June since thats when I thought about it.

I like russian roulette too .

 

[Martha]

Thanks. I always forget and wait for someone here to remind me.

 

[mickeyd]

I always forget and wait for someone here to remind me.

If you have not mailed it already, there is little hope it getting it to your uncle by tomorrow as few folks are working at the post office today (1/15). Fedex should work, though.

 

[audreyh1]

If you have not mailed it already, there is little hope it getting it to your uncle by tomorrow as few folks are working at the post office today (1/15). Fedex should work, though.

The IRS just requires it to be postmarked by the due date.

Audrey

 

[mickeyd]

The IRS just requires it to be postmarked by the due date.

Thanks for reminding me of the obvious Audrey. I'll blame it on not having enough coffee, it that works...

 

[HFWR]

I don't even have a pulse until after a couple of cups...

 

[ERD50]

postmark - what Audrey said (beat me to it).

Also, I had forgotten that the feds allow you to set up FREE auto withdrawals from a checking account for estimated quarterly payments. I think, when I did find out about this last year, it was too close to the next payment date to do it, then my ADD kicked in and I forgot all about it.

So, any negatives to the auto withdrawal? Other than needing to be aware that your account is going to get hit (any reminders, emails?). I generally keep enough cushion in the account, not really too worried. I prefer to keep all my auto deductions in one source, makes it easier to see what is coming up, but I would still do this. Better than writing checks, mailing, chance to forget.

-ERD50

 

[Nords]

So, any negatives to the auto withdrawal? Other than needing to be aware that your account is going to get hit (any reminders, emails?).

I've been doing EFTPS for years... painless. It's nice to have your refunds (if any) deposited there too.

 

[TromboneAl]

Concerning reminders...

I have my Palm Desktop software remind me of all things like this (payments, appointments, birthdays, anniversaries). Even if you don't have a palm PDA, you can use the desktop part of the software for free (http://www.palm.com/desktop). Without these reminders, I'd be sunk.

 

[TromboneAl]

Better than writing checks, mailing, chance to forget.

One year I wrote the check for my September payment, put it in the envelope, put the stamp on, and then put it in the file folder instead of the mailbox.

 

[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.

Since it's only 4 times a year (plus paying the remaining 1040 taxes due on April 15), it's pretty straightforward to schedule some fund transfers a week ahead of time into my bank account, and then schedule the 1040-ES withdrawal on the EFTPS website.

As for reminders - it's set up as a scheduled transaction in Quicken, and a reminder pops up 15 days ahead of when due. This gives me plenty of time to calculate, transfer funds, and schedule.

So - suggestion - try using Quicken to give you a reminder.

Audrey

 

[ERD50]

I've been doing EFTPS for years... painless. It's nice to have your refunds (if any) deposited there too.

Thanks for the feedback all - I will get this set up today so I am ready for next Q's payment and any 4/15 4/16 refund.

One year I wrote the check for my September payment, put it in the envelope, put the stamp on, and then put it in the file folder instead of the mailbox.

That's classic. Even though I have a written reminder on my calendar and my 'bills due' folder, it was my Mother that reminded me that the quarterly payments were due a couple times last year. Made me feel like I was in grade school again.

Does the IRS hit you with any fines if the estimated payment is a few days late?

-ERD50

 

[audreyh1]

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.

Audrey

 

[wabmester]

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.)

 

[ERD50]

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.

-ERD50

 

[audreyh1]

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!

Audrey

 

[ERD50]

and I don't want to pay any more any sooner than I have to!
Audrey

Ya gotta love that spirit!

-ERD50