NW-Bound
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jul 3, 2008
- Messages
- 35,712
OK. It can be tough, although I would think the payor would let you know.I think FiveDriver is talking about earned income from customers that is reported on a 1099, not divs/CGs from investment accounts shown on a 1099-(INT?).
FiveDriver--you really can't predict within a few K how much the 1099 will be? I suppose one problem would be a big payment that might occur 31 Dec or 2 Jan.
One time, I did work for a close friend, and he could not pay me. A couple of years later, I received a surprise deposit in my bank of a sum around $50K. I guess he wanted to surprise me. I thought his business was going under, but he apparently got some good contracts and thrived.
At the same time, I was doing great that year with other works. So, I was faced with, you guess it, AMT for that year! No IRA allowed, no Roth, not even a stingy $500 after-tax money into my children Coverdell accounts. And I am not even rich. The year earlier, I was living off my savings, and now I was paying mucho tax.