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Estimated Tax Return Questions
What is an estimated tax return?
The IRS requires individuals to pay estimated
on income that may not be subject to
. An individual may be expected to pay estimated taxes if they are self-employed, received interest or
, alimony, rent or on any capital gains earned on the sale of property. Other forms of money received may require the individual to file estimated
. When the amount of
withheld from salary, pension, or other income may not be enough, they may consider paying estimated
. An Expert may assist in calculating whether someone’s estimated income tax withholdings are enough to avoid penalties that may apply due to an underpayment of one’s estimated income tax. Read below to find more answers from the Experts when questioning estimated tax returns.
When posting estimated corporate tax payments, would someone post them to an asset account, expense account, or liability account?
It may be best to post all estimated tax payments to a tax liability account or as a prepaid/estimated
account. The actual tax payments should not affect a P&L account (Profit and Loss Account). The P&L account will only be affected at the time the tax is posted. At the end of the year an individual might record the actual tax liability to a P&L account; this may create a prepaid tax liability (
due) or a corporate tax liability (tax due).
Can someone use an estimated tax payment for the current year to pay a previous year’s tax that is owed?
An estimated tax payment is paid and applied to a specific period for a specific year. This cannot be transferred for payment on another tax debt for a previous year.
Could an individual obtain record of estimated tax payments made to the IRS?
In many cases, an individual should keep a copy of their cancelled checks or copy of the estimated tax payments made to the IRS for their own records. This may make an available reference in calculating any additional payments required for the period in question. The individual may also contact the IRS and request estimated tax payment information for payments they may have received.
When estimated tax payments are required, how does an individual avoid penalties for an underpayment?
There may be exceptions to an underpayment penalty. If someone had no tax liability for the previous tax year they may not be penalized for an underpayment. When a US citizen or a resident has filed a tax return for the previous year and taxed for the entire year, with minimum tax liability the individual might avoid being penalized. This individual’s tax bracket and percentage of withholdings may factor in when determining penalties on their tax liability.
Estimated tax is used to pay various taxes reported on a tax return. If someone has not withheld enough tax through their withholdings they may be charged a penalty by the IRS, even when a refund may be expected when filing a tax return. Estimated tax payments may be required to avoid penalties. When filing estimated tax returns one may be cautious to pay these estimated tax payments by the
as a penalty charge may be assessed on a late payment. Contact the thousands of Experts to obtain more answers to questions dealing with estimated tax returns.
Recent Estimated Tax Return Questions
I have lived and worked overseas for the past 16 years. I have been offered a job back in
I have lived and worked overseas for the past 16 years. I have been offered a job back in the US and am contemplating a move back. Was wondering from a tax perspective whether I should move back on Dec 31 or Jan 1 or mid-year for the best tax advantage. The company I am leaving has offered me a severance bonus (sizable) for my years of service. I have been paying taxes in both US and my current host country (and claiming foreign tax credit). . . thoughts?
Team, My estimated tax return is appox 4500 for 2012. Two
My estimated tax return is appox 4500 for 2012.
Two Questions:I have appox $26,000 in repairs for 2012. As I complete my taxes on turbo tax, when I reach the $4500.00 refund amount I still have appox $15,000 in additional repairs but the additional repairs do not increase my refund amount. Will the additional repairs "$15,000" from 2012 be credited to my 2013 return?
Question 2:! June 2012 I signed a document to authorize a property manager to manage my property and had appox $7000.00 worth of work completed. However, my real estate agent did not advertise the property for rent until Aug 2012 and the 95% of the work was completed after July. My question is will I be able to write off the 95% of the repairs as an expense since I authorized the property manager to manage the property.
I am a 72 year old retiree. By August 311, I will be receiving
I am a 72 year old retiree. By August 311, I will be receiving 150,000 in cash settlement of aa civil law suit I instigated against a former employee. The business no longer exists. I live on SS and annuities. In 2006, my tax advisor had me claim some 200,000 in income that was in fact embezzled, creating a larger tax bite than I actually owed. ( the business was an S Corp) How do I treat this 150,000m for tax purposes? Do I need to file an estimated tax return? What about the 70some thousand to recover from the miscreant? Can my 2005 return be adjusted? My ordinary tax bite is quite low---I have a very large mortgage that helps . I realize I am asking a number of questions. but I need your input.
; Rochelle C Weisgurt
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