Final 2008 Tax Estimate Due This Week
Posted 01-13-2009 at 10:08 PM by kristinecpa
Just a reminder that your fourth quarter 2008 tax estimate is due on January 15, 2009.
This estimate goes towards your 2008 tax liability so it reduces the amount you will owe on your 2008 tax return when you file.
To avoid the penalty for not paying enough estimated tax, you need to pay in at least 90% of your 2008 tax liability or 100% of your 2007 tax liability, whichever is less.
Alternatively, you can choose to file and pay your 2008 taxes by January 31, 2009 to avoid any underpayment penalties.
Use Form 1040-ES to submit your estimated tax payment.
For a refresher on estimated tax payments, see ‘Do I Need to Make Estimated Tax Payments?'
This estimate goes towards your 2008 tax liability so it reduces the amount you will owe on your 2008 tax return when you file.
To avoid the penalty for not paying enough estimated tax, you need to pay in at least 90% of your 2008 tax liability or 100% of your 2007 tax liability, whichever is less.
Alternatively, you can choose to file and pay your 2008 taxes by January 31, 2009 to avoid any underpayment penalties.
Use Form 1040-ES to submit your estimated tax payment.
For a refresher on estimated tax payments, see ‘Do I Need to Make Estimated Tax Payments?'
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