|
Posted by ed on May 8, 2007, 1:12 am
Please log in for more thread options d...@hotmail.com wrote:
> We now receive ~$150,000 in qualified stock dividends
> annually. Only my wife works, and we have had all of our
> state and federal tax withholding (w/h) taken from her
> payroll check. Soon she too may want to likewise retire, as
> the needed w/h from each check (for both her salary and the
> dividends) makes it seem "pointless to work" - lol!
>
> I was wondering if I could instruct the agent for the
> company paying those dividends to withhold a one time w/h
> payment for both the fed and state (CT) each December. That
> w/h would be calculated to be sufficient, such that we would
> not owe a tax penalty. I am also assuming that there is no
> "time element" associated with that stock dividend w/h
> payment; like payroll w/h, it is assumed to be paid over
> the entire tax year. I would prefer not to file quarterly
> estimated taxes (nor further increase the w/h from wife's
> check).
don, it's a good idea, but might be difficult to get a
broker to make a one time withholding each year. I suggest
if you have an IRA or 401k or pension that you take a
Required Minimum Distribution from that you use that for
your withholding. Otherwise, the broker would probably
withhold monthly the same amount.
ed
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap