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To: Rio

No.


14 posted on 04/10/2015 5:32:00 PM PDT by napscoordinator (Walker for President 2016. The only candidate with actual real RESULTS!!!!! The rest...talkers!)
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To: napscoordinator; Rio

It depends on your situation. If you are just a wage earner and have at least paid as much tax as you owed last year, there is no penalty. Also, if you are within a certain percentage (don’t know the exact number) you are fine.

If you have income from other sources and pay estimated taxes, it gets more complicated and there are other criteria. I do a running calculation throughout the year and usually estimate it very close. But, there are some tax preference items like qualified dividends that I don’t try to account for, because I don’t know the exact amount. So, I treat all dividends as ordinary income.

I end up getting a small to medium—sized refund every year, but simply reduce my first estimated tax payment on 4/15 by that amount.


70 posted on 04/10/2015 7:03:56 PM PDT by justlurking (tagline removed, as demanded by Admin Moderator)
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