Increase Your Withholding to Avoid Underpayment Penalties
Article Highlights: Withholding Estimated Tax Payments Underpayment Penalties Safe Harbor Payments Withholding Strategy Uncle Sam considers our tax system a “pay-as-you-go” system and expects taxpayers to prepay taxes on income as they receive it throughout the year. Taxes are prepaid through withholding and by estimated tax payments. Since withholding is not an exact science and […]
Individual Estimated Tax Payments for 2013 Start Soon
Our tax system is a “pay-as-you-go” system, and if your pre-paid amount is not enough, you become liable for non-deductible interest penalties. To facilitate that concept, the government has provided several means of assisting taxpayers in meeting the “pay-as-you-go” requirement. The primary among these include: Payroll withholding for employees; Pension withholding for retirees; and Estimated […]
Individual Estimated Tax Payments for 2012 Start Soon
Our tax system is a “pay-as-you-go” system, and if your pre-paid amount is not enough, you become liable for non-deductible interest penalties. To facilitate that concept, the government has provided several means of assisting taxpayers in meeting the “pay-as-you-go” requirement. The primary among these include: Payroll withholding for employees; Pension withholding for retirees; and Estimated […]
Plan Your Withholding & Estimates for 2011
April 18 is the due date for the first estimated tax installment for the 2011 tax year and only a couple of weeks away. You may not realize it, but taking a few minutes to plan your estimated tax payments and/or proper withholding amounts for the year can actually insulate you from underpayment penalties in […]
