Currently, there is no rehable way to communicate to the IRS and state taxing authorities that the estimated tax
payments belong to the spouse, even though they are under the taxpayer's Social Security number since the taxpayer is listed first.
The combination of the larger mutual fund capital gain distributions and the applicable increased tax rate has necessitated increasing estimated tax
payments and, for retirees living on fixed income, has reduced after-tax funds.
As an alternative to the required annual payment methods in the preceding paragraph, taxpayers can pay estimated tax
by paying a specified percentage of the current year's tax, computed by annualizing the taxable income for the months in the taxable year ending before the month in which the installment falls due.
Alternatively, individuals can pay estimated tax
by paying a specified percentage of the current year's tax, computed by "annualizing" the taxable income for the months in the taxable year ending before the month in which the installment falls due.
Keywords: taxpayer compliance; estimated tax
payments; tax agency; game theory.
As a result, many individuals must project their current year income for estimated tax
purposes throughout the year on the possibility that they might be subject to disqualification from existing safe harbor provisions.
As a practical matter, taxpayers may pay estimated income taxes more frequently than quarterly, but this is not explicit in the Code and might not be obvious on Form 1040-ES, Estimated Tax
for Individuals, or its instructions.
The estimated tax
is payable in four installments by individuals and corporations.
Taxpayers who do not have their taxes withheld (or do not have enough withheld) may have to make estimated tax
Automatically calculate estimated tax
payments -- Easily calculate the estimated taxes
due with the current year's federal or country returns.
Affected taxpayers who faced an estimated tax
payment date on Sept.