Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 10-29-2007, 02:35 PM
Junior Member
 
Join Date: Oct 2007
Posts: 2
AMT and withholding

The AMT bracket for 2007 is lower than 2006 as a result lot of taxpayers may have to pay more taxes for 2007 for the same income in 2006. Congress may make a decision later in the year to adjust the rate but it will be too late to make any adjustment to withholdings. My question is, if my withholdings are similar to 2006 and the AMT adjustment does not happen which would mean I need to pay more taxes this year, then can I wait till the end of the year and then just make one Estimated Tax payment on January 15, 2008 to make up the difference. I only have salary income so usually do not make any estimated tax payments.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 03-03-2008, 02:40 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,397
Blog Entries: 3
Yes, you can pay the balance of the taxes on January 15th 2008, or you could pay the balance of your tax liability on April 15, 2008. The important thing to remember is that you should try and avoid the underpayment penalties and interest.

Always try and pay at least 110% of prior years tax liability to avoid the underpayment penalty and interest. You may accomplish this by increasing your withholding or paying estimated tax payments during the year!

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning