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To: Gerald Walls who wrote (95021)	1/5/2000 11:42:00 AM
From: Jim McMannis	Respond to of 186894

RE:"I think the first estimated payment for fiscal 2000 is due on April 17 (since the 15th is a Saturday). The one due in January is for the fourth quarter of 1999"... This is correct.

To: Gerald Walls who wrote (95021)	1/6/2000 5:14:00 AM
From: Amy J	Read Replies (2) \| Respond to of 186894

OT Hi Gerald, Thanks for your post. RE: "I don't do installment payments myself since I adjust my salary withholding to cover at least the minimum required to avoid penalties." I may be wrong, but I thought there was only a ~5% interest charge, not both an InterestCharge + PenaltyFee? RE: "105% (the percentage fluctuates but someone posted this number earlier so I'll take it as given) of the previous year's liability." Okay, I've done that, so I should be okay. I'll re-check the figures. I did see an accountant sometime in Spring, but I had an unusual Q4. RE: "If you make estimated payments, then each quarter you annualize your year-to-date income and pay the appropriate taxes for the correct fraction of that amount." I've done this in the past. I remember it exactly as you described, which is: if the annual estimate is X, then the payments need to be X/4. (Deibutfeif, if you're reading this, then this is where I think your post may be in error? I'm not sure, but I thought a person had to pay exactly X/4 for each quarter, not X in one quarter to avoid the InterestCharge -- although, in a stock market like 1999, delayed payment would be better). RE: "If your income varies drastically from quarter-to-quarter It does RE: "then you can do some sort of averaging/smoothing, but I don't fully understand that. If you don't pay enough in a quarter then you will be charged penalties and interest even if in the next quarter you overpay to make up for the deficit." Hm, both penalties and interest? Not, just ~5% interest? RE: "With withholding, no matter when the taxes are withheld from your salary they are considered to have been withheld evenly throughout the year (unless you elect otherwise). This means that you can have your entire paycheck withheld at the end of the year, if you so desire, to cover a massive cap gain in the first quarter." I've done this before. It's a nice way to keep investing tax money. [Jim, if you're reading this post, you mentioned 1040ES, and the only thing I didn't get about 1040ES is if your Q4 income happens to vary wildly] RE: "The "even" withholding when combined with averaging/smoothing for large income changes make the withholding option more flexible." Didn't know that. Can you put the last few paychecks towards tax payments using the "combined" approach you described, like you can do with the pure withholding method, for a Q1 gain? RE: "I'd recommend taking the most allowances you can without IRS notification (9 or 10, I believe) and then having a large additional amount withheld." Do you know what this IRS notification is about? Or, when it applies? Or, the significance of it? RE: "The one due in January is for the fourth quarter of 1999." Thanks, its date is coming... : ) Amy J