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You are replying to this message: | | Posted by JanetK_CA on 2/21/21 4:46pm
I've never heard this before. That may be an option, but I don't believe it's a requirement to have the IRS do the calculation for us. What IS a requirement, and something we all should be doing, is making some kind of quarterly estimated payment for what we believe we might end up owing on our taxes at the end of the year. It might also be easier making four smaller payments rather than having to come up with a big payment when filing.
As someone else said, I believe there are certain income thresholds where we're required to pay at least a certain percentage of estimated tax due as we go (i.e. at least quarterly) or fines are applied. If we're going to be owing something when we do our return, it just makes good sense to send in some kind of estimated payment.
The forms are available online (http://www.irs.gov/pub/irs-pdf/f1040es.pdf) and include just about anything you'd want to know on the issue, including a form to use to calculate amount to pay. However, we don't have to include any documentation of how we come up with the amount being sent until we file our actual return. There also are due dates for each of those quarterly payments, so I suggest marking them on calendars in advance.
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