Posted by Hugh on October 11, 2004 at 12:09:24:
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Simple Tax Question - Posted by Hugh, Los Angeles
Posted by Hugh, Los Angeles on October 11, 2004 at 09:46:21:
I have a simple question about estimated tax payments.
If you apply a refund from last year (say, 2003) to this year’s taxes (2004), does that count as an “estimated tax payment”?
In other words, suppose “Joe” failed to make his first and second quarter estimated tax payment for 2004… and say these payments should have been $5,000.00. But Joe overpaid his 2003 taxes by $5,000.00… and he applied this toward his 2004 taxes (i.e., didn’t take a refund). Will Joe still have to pay a penalty for failing to make his first and second estimated tax payments for 2004… even though his overpayment from 2003 was enough to cover it?
Thanks for any input!
---- Hugh
Re: Simple Tax Question - Posted by JOHN K HASLACH, CPA, MST
Posted by JOHN K HASLACH, CPA, MST on October 11, 2004 at 10:20:35:
An overpayment applied to the next year is considered as an estimate made on April 15.