I needed to dig some numbers out of my 2002,2003,2004,and 2005 tax returns and noticed something funny on the estimated taxes I paid to get into safe harbor. On my federal return I paid 100% of my previous year's tax on three, and on one I paid 90%. On my NY return I paid 100% of my previous year's tax 2 years, and 90% one year.
I know now it is 100%, so I don't understand the 90%. Was it ever 90%, either federal or NY? If not, any idea WHY I paid 90%? Thanks.
noticed something funny on the estimated taxes I paid to get into safe harbor.
one I paid 90%.
federal or NY? If not, any idea WHY I paid 90%?
All I can say is that one safe harbor is having 90% of the current year's tax already be paid by withholding plus quarterly deposits.
and noticed something funny on the estimated taxes I paid to get into safe harbor.
one I paid 90%.
either federal or NY? If not, any idea WHY I paid 90%?
Okay, maybe I got the two ideas mixed up and thought 90% of last years was adequate. Thanks.
I think this safe harbor is allowed only if the quarterly deposits are identical, isn't it? If the quarterly deposits are unequal, then doesn't the long part of the Form 2210 have to be filled out to see if the appropriate amounts were withheld and paid for each quarter, and penalties might apply even though the sum total of withholding and quarterly deposits is 90% or more of the current year's tax?
Also, if the AGI is above a certain level, isn't 100% of last year's tax not a safe harbor but 110% must be paid?
Dilip Sarwate
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