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Subject Author Date
estimated Fed taxes? Jeff 04-28-2008
Posted by Arthur Kamlet on April 29, 2008, 9:59 pm
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>As for e-
>filing, UNLESS you are due a refund, WHY? So its cost 41 cents, or
>maybe a couple of $$$ to get a receipt, deduct that cost from the
>other savings!.
>
>Consider that taxpayer has used this ploy to pay 90% of current
>year's *estimated* tax (or more) , or the amount of last year's
>tax), he OWES the IRS so what's the hurry to e-file? I have yet to
>e-file because we UNDERPAY the minimum acceptable amount and pay the
>other 10% or more next April.


E-filing is separate and distinct from paying, and you can e-file
in January but not pay until April 15th.


Arguments for efiling - other than saving postage and less
paper -- include a postmark that holds up better than even
a certified mail receipt, and not having to rely on seasonal
temps who are data entry clerks getting everything right.
Mistakes crop up far too frequently.


And far too often a paper return will arrive unsigned and treated
as not filed.
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

--
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Posted by Harlan Lunsford on April 29, 2008, 11:36 pm
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 ed wrote:
>
> The "willing to use" is because before age 70 an IRA withdrawal is
> voluntary and maybe he wants to keep the money in his IRA.. As for e-
> filing, UNLESS you are due a refund, WHY? So its cost 41 cents, or
> maybe a couple of $$$ to get a receipt, deduct that cost from the
> other savings!.

Even those over 70 it's still a valid planning tool.
>
> Consider that taxpayer has used this ploy to pay 90% of current
> year's *estimated* tax (or more) , or the amount of last year's
> tax), he OWES the IRS so what's the hurry to e-file? I have yet to
> e-file because we UNDERPAY the minimum acceptable amount and pay the
> other 10% or more next April.

Well, in my case, my state mandates efile for all returns filed by my
office, and that includes my own.

ChEar$,
Harlan

--
<< ------------------------------------------------------- >>
<< 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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by ed on April 30, 2008, 12:38 am
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wrote:
> ed wrote:
>
> > The "willing to use" is because before age 70 an IRA withdrawal is
> > voluntary and maybe he wants to keep the money in his IRA..  As for e-
> > filing, UNLESS you are due a refund, WHY?  So its cost  41 cents, or
> > maybe a couple of $$$ to get a receipt, deduct that cost from the
> > other savings!.
>
> Even those over 70 it's still a valid planning tool.
>
>
>
> > Consider that taxpayer has used this ploy to pay 90% of current
> > year's  *estimated* tax (or more) , or the amount of last year's
> > tax),  he OWES the IRS so what's the hurry to e-file?   I have yet to
> > e-file because we UNDERPAY the minimum acceptable amount and pay the
> > other 10% or more next April.
>
> Well, in my case, my state mandates efile for all returns filed by my
> office, and that includes my own.
>
> ChEar$,
> Harlan

Harlan: What do they do about returns that can't be e-filed? Glad I
don't live there but then, maybe the climate or some other attributes
make it worth while (the reverse of my option to withhold but you'r
unable to e-file.

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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Harlan Lunsford on April 30, 2008, 1:31 pm
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ed wrote:

>
> Harlan: What do they do about returns that can't be e-filed? Glad I
> don't live there but then, maybe the climate or some other attributes
> make it worth while (the reverse of my option to withhold but you'r
> unable to e-file.
>
You're quite right there, for this would be an exception and okay to
paper file with the state. Hadna thought that far ahead. (grin

C$,
H

--
<< ------------------------------------------------------- >>
<< 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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Jeff on April 30, 2008, 12:10 pm
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>> >How much should I pay for estimated Fed taxes so that I do not owe a
>> >penalty if my income next year is higher than in 2007?
>>
>> I fill out the 2210 penalty form to tell me what I owe
>> any given quarter.
>> My investment income is irregular.
>
> Jeff
> .: Are you aware of the special break you can give yourself as a
> retiree? Instead of paying installments don't do anything all year
> and then in December withdraw your RMD from your 401K or IRA and have
> the trustee withhold the amount of your last year's tax (or at least
> 90% of what you are certain will be your current year's tax). If you
> are under 70 this presumes you are willing to use an IRA distribution
> instead of paying your taxes with after tax dollars. Also, before
> doing this call your trustee and make sure they will withhold and how
> long it takes them because it must be withheld from a current year's
> distribution.
>
> Actually any source of income that you can withhold from will work,
> even Social Security but you would be paying some each month instead
> of investing that to pay in December. I do this with T.Rowe Price
> verbally. I call them to distribute the amount of my RMD and withhold
> the amount I need and send me the remainder. Painless, convenient, no
> paperwork, no penalties.
>
> ed
>
No, I was not aware of that. I will explore it with my broker.

I am not yet 70.5 years old and therefore am not yet in the mandatory
withdrawal stage of my IRA. But I do have income from other
investments. I will probably make use of this when I start my
withdrawals.

Jeff

--
<< ------------------------------------------------------- >>
<< 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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

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