If a person forgot to make quarterly payments for 2007 estimated taxes, is it better to use four Form 1040-ES and pay the amount with 4 checks? or pay the whole amount with one check and one Form 1040-ES?
Answer by wartz
Just send the voucher in with a check. IRS will be happy to take your money any time. Let it figure out if it is worth while to compute a penalty
Answer by Judy
Send the 4th quarter voucher, with one check for the whole amount. If you send the other quarters now, late, you’ll pay a penalty. If you just send it all as 4th quarter, you’ll probably slide under the radar
Does the 2013 Form 1040-ES (http://www.irs.gov/pub/irs-pdf/f1040es.pdf) reflect the changes that were just passed by Congress after Obama become President? If not, how do I correctly calculate the estimated tax that I should pay according to the newly past legislation?
Answer by wartz
Don’t count your tax reductions until the president signs them into law.
Answer by Dances with Aardvarks
I always stick with the standard “100% or 110% of LAST year’s tax liability rule” and just bank any extra as needed if the projected tax liability appears to be exceeding that amount. If it comes in a little lower, I just roll the excess over to the next year to reduce the minimum required payments next year.
If it looks like income (and therefore the tax liability) is dropping precipitously I cut the quarterly payments as needed to meet the 90% rule for the current year.
Unsigned legislation never enters into the fray.
Answer by Judy1
The changes haven’t even been passed, although they probably will be in the next couple days, and the president will almost surely sign it if and when it’s passed. It would take awhile before any calculators would be changed. The 1040ES form doesn’t change – you just show on that how much estimated tax you are paying. If it passes though with the $ 400 cut, you could probably reduce your quarterly payments by $ 100.