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One more thing: 2009 estimated tax payment relief
February 13, 2009
I almost forgot to mention an odd little item of individual tax relief in the conference version of the stimulus monstrosity: limited relief for 2009 estimated tax payments for individuals with business income.
Most individuals avoid estimated tax underpayment penalties by paying in combined withholding and estimated payments either
- 90% of current year tax, or
- 100% of prior year tax (110% for those with prior year adjusted gross income over $150,000).
The bill has a provision for 2009 only reducing the 100% and 110% amounts to 90%. It applies to individuals with 2008 AGI up to $500,000 who had more than 50% of their 2008 income from a "small business." It leaves it up to the Treasury to certify what income is treated as from the a small business, defined as one with fewer than 500 employees. (Sec. 1212 of conference bill).
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Comments
You have to submit to the IRS quarterly payments equaling 90 per cent of what you estimate you'll make this year? That can't be right.
Posted by: 90 per cent of what?! | February 13, 2009 4:39 PM
Read it again: 90% of current year "tax," not current year "income."
Posted by: Joe Kristan | February 13, 2009 5:49 PM
When country needs to pay for all the costs of maintaining the new programs/infrastructures as well as pay for the solution to the next problem the government decides to "fix"; maybe the 90% of what you estimate you make, will be correct!
Posted by: Mike Phillips | February 16, 2009 8:16 AM
I'm having a heck of a time trying to find out if I need to pay estimated taxes if I had NO income last year. I went from being a stay-at-home mom to being a consultant for a company I used to work for. Should I just assume that I need to pay estimated taxes, and then pay 90% of my current year taxes?
Posted by: Jennifer | March 24, 2009 8:41 AM
Previous poster was correct: once Obama's done with his massive union handouts (e.g. healthcare, etc.) you may as well just have your checks deposited directly with the IRS. You owe more on the national debt than you earn.
And even if you managed to keep anything it'll be wiped out once inflation hits 15%.
Republicans spent like drunken sailors. The Democrats spend like drunken sailors on meth.
Posted by: Fred | March 13, 2010 1:30 AM