Okay, no crisis on estimated taxes

[jducoeur]

No resolution yet on the job front, and it's D-day, so I sat down and actually went through the estimated tax worksheet.

As some folks had expected, it turned out to be a non-issue. The IRS threshhold is that we need to be withholding at least 110% of last year's taxes; in practice, even if I continue consulting and we only have msmemory's withholding, we're still *way* over that. (Last year's tax was quite modest, since I wasn't bringing in any income.)

So a small yay -- no April 15th hassle for me, and I can leave the money set aside for taxes in the bank for the time being, gathering at least a teeny-tiny bit of interest for us...

Comments

[rosinavs.livejournal.com]

I came close to having penalties one year because my mutual funds had tons of capital gains with no withholding. What saved me was that the previous year I had moved to Massachusetts and paid very little taxes. Since I'd withheld more than I owed the previous year, I was fine in spite of owing the IRS $1.1k.

Said mutual fund has now tanked and been withdrawn for house downpayment.