[tophcfa]

It wouldn’t upset me nearly as much paying taxes every year if they would use the money to pay down the national debt.

[CoachKandSportsguy]

Originally Posted by Rainger99

Last year, I think all of my capital gains came in the 4th quarter.

Find out what day the cap gains are recorded by the mutual fund, and see if you can find the gains prior to the end of the year, and then send in the Q3/4 payment late with the estimated tax. . . Some years you get cap gains, other years you don't. . I got caught again this year with my dad's estate, and estate tax goes from 15% to 40% over 5K of any income not distributed. . . I agree it sux, but it's better in a taxable account to use ETFs, that's why they were invented. .

That's why ETFs are considered a tax advantaged strategy, as the cap gains aren't distributed at the end of the year. Not sure what benchmark your mutual fund uses, but you can find an ETF which tracks the same index, and then you only pay cap gains when you sell, as the difference between the sale and purchase price, solely.

good luck

[Stu from NYC]

Was very happy when my limited partnerships were done and did not have to deal with them.

Running a business and reporting wages was more than I wanted to deal with.

[CoachKandSportsguy]

Originally Posted by Stu from NYC

Was very happy when my limited partnerships were done and did not have to deal with them.

Running a business and reporting wages was more than I wanted to deal with.

totally agree. It sux to have oil and gas publicly traded LLCs because the IRS requires you to pretend to be an owner of 0.000001% of the company, and you have to file all the expenses of the company as if you were the company, times 0.000001%., including oil and gas recovery taxes and credits, etc. . totally sux. . The GP files a very limited income tax return. . .

Even though the interest rate was great, the filing headaches were more than enough to sell the stock
ASAP. . and reminder to never buy another one again. . .

[jimhoward]

Bill14564's advice is very smart. I have often underpaid my estimated taxes and ended up paying interest and penalties. Its a really dumb thing to do. Use the safe harbor method and pay your estimated taxes.

[tophcfa]

Originally Posted by Rainger99

This is the first year that I have to pay estimated taxes.

99% of my income is social security, dividends, and capital gains.

I know what my social security will be but how do you estimate dividends and capital gains?

Last year, I think all of my capital gains came in the 4th quarter.

And am I supposed to pay in April for gains that don’t arrive until December? Does the IRS expect you to sell stock to come up with the money? How do you pay estimated taxes on income that you don’t have?

Same here. I had to pay about a $100 penalty for underestimating taxes due because my interest, dividends, and capital gains were higher than anticipated. Yet on the years where I got a significant tax refund because I overestimated estimated taxes, I didn’t get a credit for giving the government an interest free loan.

[CoachKandSportsguy]

Originally Posted by jimhoward

Bill14564's advice is very smart. I have often underpaid my estimated taxes and ended up paying interest and penalties. It's a really dumb thing to do. Use the safe harbor method and pay your estimated taxes.

the problem with that is if your ID is hacked, and someone files a return in your name, you have a huge hassle to get it back. If you owe a small amount of taxes, then you are not waiting for a refund if someone scam files ahead of you. .

pros and cons. . so best is to pay 99% of estimated due, and the penalty won't be very big. .

[Pugchief]

Originally Posted by manaboutown

Got nailed as usual with AMT, NIIT and IRMAA again next year. Ouch!

First world problems. You prob won't get much sympathy here.

[Pugchief]

Originally Posted by Bill14564

The only thing I dislike about the H&R Block software are the fees to file an extension and to file State returns (when that mattered). This year I used the IRS Free File for the extension form to avoid the H&R Block fee.

I use HR Block as well and agree with your fee gripes. However, that's the same with TurboTax and TaxCut.

I have been using freefillableforms.com for years to file my extension (yes, K-1s) for free. The state form can be printed and mailed. Less secure than e-file, but I'm not willing to pay extra out of principle. Some states will let you e-file for free on their website. You can calculate the return in HR Block and then transfer the data to the state's website. Or just pay the $20. Your choice.

[Pugchief]

Back to the OP: Today is the 16th. Are the roads fixed yet?

[Stu from NYC]

Originally Posted by CoachKandSportsguy

totally agree. It sux to have oil and gas publicly traded LLCs because the IRS requires you to pretend to be an owner of 0.000001% of the company, and you have to file all the expenses of the company as if you were the company, times 0.000001%., including oil and gas recovery taxes and credits, etc. . totally sux. . The GP files a very limited income tax return. . .

Even though the interest rate was great, the filing headaches were more than enough to sell the stock
ASAP. . and reminder to never buy another one again. . .

The other advantage of my CPA he tells me how much and when to pay estimated taxes to avoid penalty and interest. Also when I come up with a new deduction he tells me if it is a reasonable one keeping me out of trouble.

[OrangeBlossomBaby]

Paid no fees. Got a refund of almost everything we paid in last year. I suppose it'd probably be really nice to have enough income, that we could complain about how much tax we had to pay.

But we'll settle for being poor enough that the standard deduction means we can afford to replace our 20-year-old oven range.

[Topspinmo]

Originally Posted by Stu from NYC

If only we did not have to pay preparers to do our taxes for us

Too much money in collecting and getting out of paying taxes, why flat tax will never be that simple. Only the poor middle class suffer.

[asianthree]

Originally Posted by Stu from NYC

The other advantage of my CPA he tells me how much and when to pay estimated taxes to avoid penalty and interest. Also when I come up with a new deduction he tells me if it is a reasonable one keeping me out of trouble.

We have never paid a penalty, interest, with the family CPA firm used since I was 14, always free for me until I graduated.
He retired his daughter took over the firm, but tweaked our quarterly’s so we get a refund just under $200.

Her fee is well worthwhile will continue, even once all the LLCs, and other residential homes are deeded to our kids and grandchildren.

[RoseyRed]

Over 20 yrs ago after going through multiple accounting and income tax classes, I did taxes for family and friends for a lesser price. This was a deal for them and extra money for me. In my experience, if you are up on the latest tax laws and are knowledgeable on changes then it is great. I came to a point where I was not in the tax world anymore and did not want to spend the time or energy to stay current on the knowledge. I have the ability, but at this stage of my life my energy is better spent elsewhere.

Originally Posted by Dr.Butler

You don't. You can literally do it all yourself, for free. The issue is they can be very complicated so we pay so we don't get in trouble.