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Originally Posted by mikehimself Thank you for the reply!
Just to clarify, I increased the Federal (and State) Tax withholding from my payroll. I calculated that by the end of the year the total Federal (and State) Tax withheld would fully cover the required 110% of the prior year tax.
But then I lost the job, the payroll stopped, and it was already too late to make the Q3 estimated tax payment... Fully covered everything in Q4, but underpayment for Q3...
You think they will deny it, does not sound as a valid reason (and good efforts)? |
Just to clarify, I increased the Federal (and State) Tax withholding from my payroll. I calculated that by the end of the year the total Federal (and State) Tax withheld would fully cover the required 110% of the prior year tax.=>>then no problem at all as you can see, If your previous year's adjusted gross income was more than $150,000 for married couples filing jointly and single taxpayers, or $75,000 for married taxpayers filing separately, and you want to base your estimated tax payment on the prior year's amount, you'll have a higher safe harbor percentage to meet.
In these cases, the IRS expects the high-earning taxpayer to pay at least 110% of his or her previous year's tax bill
But then I lost the job, the payroll stopped, and it was already too late to make the Q3 estimated tax payment... Fully covered everything in Q4, but underpayment for Q3...
You think they will deny it, does not sound as a valid reason (and good efforts)?==>> I understand what you mean needless to say final decision?ll be determined by the IRS;however, losing your job and was late was not reasonable reason UNLESS you end up owing less than $1K in April of 2016 I mean unless you might have underpaid your tax billAnd that could result in you owing added penalties and interest.