re: Tax Filing Extension

quote:

---

With estimated taxes you avoid a penalty if you pay 90% of the current year's final number or 100% of the previous year's tax due whichever is lower by the 15th. It is shorthand for quarterly payers so as long as you pay 100% of the last year's total by the 15th you avoid any penalties but you could have a big check to cut about a month after your 3rd quarterly for the year. Been there done that but I knew it was coming.

---

Again, estimated taxes are different than the taxes you owe on your return on April 15th.

You owe 100% of your actual tax liability by April 15th whether you pay estimated taxes or just do withholdings. It doesn’t matter.

The estimated tax rule you are referring to is what you owe each quarter to avoid penalty.

quote:

---

IIRC withholdings payers don't have the 100% of last year to rely on I think they have to pay the 90% of the current year. Don't quote me or rely on that.

---

You don’t know what the frick you’re talking about so quit giving advice or correcting people who do know what they’re talking about.

There are not separate rules for people who withhold and people who pay estimated taxes. It’s just usually if all your income is withheld on, then you don’t have to worry about the rule.

The rule for estimated taxes is you have to pay 100% of prior year or 90% of current year (unless you have a high AGI then it’s 110% or 100%)