Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

Non Resident Taxpayer owns an interest in MO partnership.

Non Resident Taxpayer owns...

Non Resident Taxpayer owns an interest in MO partnership. Their share of income in 2017 is a small loss ($500). In 2018 they have a huge income from the sale of the MO property ($400,000+). For 2018 estimated tax purposes, per the instructions to MO form MO -2210, "Exception # 2: Tax on prior year's Income using current years rates & exemptions - This exemption applies if your 2017 (current year) tax withheld and estimated tax payments equal or exceed the tax that would have been due on your on your 2016 (prior year) income if you had computed it at 2017 (current year rates)." Does this mean we don't have to pay estimated taxes in 2018 on the huge income because the 2018 tax on the 2017 income would have been $0?

Accountant's Assistant: The Accountant will know how to help. Is there anything else important you think the Accountant should know?

I called the Missouri Dept of revenue earlier. I explained the situation & they ended up telling me I could use exception one, the prior years tax exception. But in the instructions it says you have tax liability to use this exception. The taxpayer will not have a tax liability in 2017. Can I still use exception one?

Show More
Show Less
Ask Your Own Tax Question
Answered in 9 minutes by:
3/15/2018
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,284
Experience: Taxes, Immigration, Labor Relations
Verified

Does this mean we don't have to pay estimated taxes in 2018 on the huge income because the 2018 tax on the 2017 income would have been $0?

That is correct for all taxpayers - not only for nonresident aliens.

If your prior year tax liability was less than $500 - you will NOT be subject of underpayment penalty if you choose not to pay MO estimate taxes.

The same is correct for federal estimate taxes - but the threshold is $1000.

In such situation - the full amount of tax liability is due by Apr 15 of the following tax year.

You may choose to pay estimate taxes - that is not prohibited - but if you don't - there will not be any underpayment penalty because of prior year tax liability was zero.

Questions?

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,284
Experience: Taxes, Immigration, Labor Relations
Verified
Lev and 87 other Tax Specialists are ready to help you
Ask your own question now
Customer reply replied 5 months ago
Thank you. So you are saying my non resident taxpayer doesn't have to pay Missouri estimated taxes on their 2018 MO income because they are going to file a 2017 MO 1040 that just has a small loss on it from their interest in their MO partnership. Correct? & thank you again.
Phone call session started

The issue here - when you will calculate underpayment penalty with 2018 tax return - it will be zero even if estimated taxes were not paid BECAUSE 2017 tax liability was zero.

So that is your choice whether to pay or not to pay estimate taxes - as long as total 2018 tax liability will be fully paid by Apr 15, 2019.

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,284
33,284 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I received a Notice of deficiency form 2944 from missouri
I received a Notice of deficiency form 2944 from missouri department of revenue … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,410 satisfied customers
Robin, I have a bit of a unique case here. I just recently
Hello Robin, I have a bit of a unique case here. I just recently exited from SSI two months ago, and became self-employed as an independent contractor.I recently became aware that as such, I must pay … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Lev, Regarding the same client with recalculated IRS 2018
Good morning Lev, Regarding the same client with recalculated IRS 2018 estimated liabilities, I recently prepared and finalized her 2017 tax return. On form 656, I listed the years from 2006 through 2… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,284 satisfied customers
Are there complications with calculation of underpayment
Are there complications with calculation of underpayment when moving from filing" Married" to Filing "Married Filing Separately"? (Federal Form 2210) ?I'm using Turbo Tax online software , the form 22… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,648 satisfied customers
I took a one time distribution from my IRA in 2017. It ran
I took a one time distribution from my IRA in 2017. It ran my income up and resulted in a hefty tax bill. … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I started a new job and accidentally claimed exempt on my w4
I started a new job and accidentally claimed exempt on my w4 for 2017. I just paid the taxes owed for the last year today but am wondering what the penalty will be for this. Thank you… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,410 satisfied customers
I pay my taxes quarterly for my family support. If I can't
I pay my taxes quarterly for my family support. If I can't pay this coming quarter or be a month late what fine would I get… read more
abci168
abci168
Principal
27 satisfied customers
I need to know if its in my interest tax wise to sell my
Hi, i need to know if its in my interest tax wise to sell my primary residence in CA now in 2017 or later in 2018, we owned the house 30 years and will be making a very large capital gain … read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,284 satisfied customers
An S Corp sells its assets on 10/20/2017. The term capital
An S Corp sells its assets on 10/20/2017. The long term capital gain which will pass thru to the stockholder is 1, 500,000. He is sending in estimated tax payments today. Will he be penalized for unde… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,648 satisfied customers
I am about to file my 2016 tax return and have a $7,000 tax
I am about to file my 2016 tax return and have a $7,000 tax obligation. However, I paid $19,000 in estimated taxes. I have requested a $12,000 refund on my 1040. So far, I have made no quarterly estim… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,284 satisfied customers
If all my income would only consist of 3k in dividents
if all my income would only consist of 3k in dividents (spread out through 2017) and receiveing capital gain of 40k when I sell stock on December 15, 2017. How is my tax penalty would be calculated fo… read more
Matthew Breecher
Matthew Breecher
President
MBA (Graduate Legal Studies)
286 satisfied customers
I have questions about estimated taxes. I'm a sole
I have questions about estimated taxes. I'm a sole proprietor. I've been in business for 21 years and because my wife usually has enough taxes taken out of her paycheck I have yet to ever pay estimate… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,284 satisfied customers
I received gross distribution from an annuity upon the
I received gross distribution from an annuity upon the passing of my Mother in 2014. Because of the taxable amount on that annuity, I owe the IRS more than $1,000. However, according to the 1040 instr… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,284 satisfied customers
IS THERE ANY FINANCIAL PENALTY FOR NOW FILING A QUARTERLY RETURN
IS THERE ANY FINANCIAL PENALTY FOR NOW FILING A QUARTERLY RETURN OF ESTIMATED TAX LIABILITY IF ALL TAXES ARE PAID, IN FULL, ON APRIL 15TH?… read more
abci168
abci168
Principal
27 satisfied customers
Hi Randall, I have an issue about my estimated tax payments
Hi Randall, I have an issue about my estimated tax payments i am required to maketo the New Hampshire tax authorities. Blelow is my correspondance with an accountant on Just Answer. Customer: If i mad… read more
fastfile
fastfile
Tax Advisor
Master's Degree
550 satisfied customers
I established residency in New Hampshire at the end of February
I established residency in New Hampshire at the end of February last year. I did not make estimated tax payments (quarterlies) during the year. My tax liability will be over $500 for 2012 for NH. I kn… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,284 satisfied customers
Our accountant set us up to make quarterly tax payments and
Our accountant set us up to make quarterly tax payments and we will not be making a first or second payment, but will make a third and fourth and pay any balances by the end of the year, how do we cal… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,284 satisfied customers
AN INDIVIDUAL OWNS 100% of an s corp,its s corp income for ...
AN INDIVIDUAL OWNS 100% of an s corp,its s corp income for 2006 will approx 2,000,000. corp in existence for long period of time. no estimates paid. for purposes of form 2210, underpayment of tax pena… read more
RD
RD
Self Employed
Master's Degree
1,164 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x