Estimated tax safe haven

No. The relevant number from your 2009 return is "total tax" (line 60 of the 2009 1040). If that's zero, you're safe.

Phil Marti

Almost Line 60. From the instructions:

Line 14b. Tax shown on your 2009 tax return. If you filed Form 1040, the ?tax shown on your 2009 tax return? is the amount on line 60 reduced by the following.

1. Unreported social security and Medicare tax or RRTA tax from Form

1040, line 57.

1. Any tax included on line 58 on excess contributions to IRAs, Archer MSAs, Coverdell education savings accounts, and health savings accounts, or on excess accumulations in qualified retirement plans.
2. Write-ins on line 60 as listed under Exception 2 on this page.
3. Any refundable credit amounts listed on lines 63, 64a, 65, 66, and

67, and credits from Forms 4136, 8801, and 8885 included on line 70.

You mean that your regular income was less than the $3,000 you were allowed to deduct for investment losses?

Thanks,

My 1040 line 60 was zero.

2009 for me was an un-usual year and not likely to be repeated as my IRA RMD kick in in 2010.

I noticed the imprecise use of terminology also. His "regular income" might actually have been as much as, say, $11K, and still have a taxable income of zero.

Taxable income is AGI minus standard/itemized deduction minus exemption deduction. The (up to) $3K of capital loss would just be one component of AGI.

-Mark Bole