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So if we do NOT pay 100% of our tax liability for 2010, but we pay some lesser amount, and we owe nothing additional for 2011, we will have to pay a penalty?
What if you an amount equal to 90% of the current year's tax liability in the first two quarters?
*pay an amount
I see. Thank you. My last question is, does my husband's tax withholding from his paycheck count towards our estimated tax payments? In other words, if an amount over our tax liability for 2010 has been withheld from his pay for 2011, does this qualify as option number one for avoiding penalty.
when you say "owe" does that mean owe additional payment over what has already been withheld?
Haha thank you- I happen to be a lawyer so I do know the right questions to ask- but I do not know much about taxes! I just have one final question and then you will have fully provided the answer I am looking for and I can press accept:) When calculating the total "estimated tax" that we have paid for 2011 (for purposes of determining if we have already paid an amount equal to 100% of our total tax liability for 2010), do we include BOTH the withholdings from my husband's pay check AND the estimated tax payments I made in the first two quarters?
Ok, I think we are good then because my husband made a lot more money this year and quite a lot has been withheld. Thank you, XXXXX XXXXX done a great job of answering my questions. Have a good night!
Hmm good to know. Civil litigation mostly. I did take a tax class in law school but I know just enough to get myself in trouble!
Thank you, XXXXX XXXXX fully answered my questions:)
I think we are good for 2011 b/c my husband made significantly more money this year and quite a lot has been withheld.
I was just debating whether to pay the remaining estimated taxes or not. Thanks, XXXXX XXXXX good night!