Question: If I earned the majority of my income this year through one check (1099) what would be the most efficient way to pay/calculate my estimated taxes? Since my income is significantly higher than for
2006, I was wondering if the 'safe-harbor' of paying 90% of last years taxes wouldn't apply. Then, of course, I would pay the difference on or before April 15th. My gross income for 2007 is below $150,000. Any thoughts?
You have misstated the "safe harbor" amount. Actually, it is either
100% of last years tax liability (110% if AGI was over $150,000) OR 90% of the current years tax liability. Withholding is best, or estimated payments made in 4 equal amounts could also work.Then, of course, I would pay the difference on
For safe harbor calculations, the $150,000 AGI applies to your 2006 income, not 2007.
The general rule is 100/110% of last year's income or
90% of current year's incomeYou can annualize the current year's income quarterly based on when it is earned This requires doing quarterly projections
-----> real address on hobokeni or hobokenx
Is "this year" 2008? That's the date on your inquiry.
What is the date of that "one check" by month and year?
"estimated taxes for what year?
Since my income is significantly higher than forhigher in what year?
the safe harbors are either 100% or 110% of last year's tax depending on last year's AGI, or 90% or the current year's tax
April 15th of what year?
thoughts about what?
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