Estimated Tax: payment schedule?

Question

this is my first time paying the estimated tax with form f1040es. i'm planning on paying 100% of the tax i owed in 2006 instead of figuring out that confusing form. my income will basically be the same. I have just received the fellowship stipends in july that will be subject to the estimated tax and I'm wondering what form I need to file in order to explain to the IRS why I did not pay the first two scheduled payments of the estimated tax. does such a form exist? if so, how do i fill it out?

if no form exists, then will the irs assess me a penalty? if i did not have the money before july, how can they assess a penalty?

Answer 1

No form exists. What you can do if the 1040 calculates a penalty is you can annualize your income for 2007. It breaks it down into 3 periods besides the end of the year. You indicate in the first column how much your income was from Jan - Mar, 2nd column how much income was from Jan - May, and 3rd column how much was Jan - Aug. Since you didn't get stipend till July income for 1st & 2nd column would be $0.

Answer 2

a million. in the journey that your earnings for final 3 hundred and sixty 5 days (2011) grew to become into low adequate which you had no earnings tax for that 3 hundred and sixty 5 days and no self-employment tax for that 3 hundred and sixty 5 days, then you definitely probable do no longer ought to pay any predicted tax for this 3 hundred and sixty 5 days (2012). in many circumstances talking, the mandatory predicted tax fee is $0 if there grew to become into no tax for the previous 3 hundred and sixty 5 days. 2. In a 300 and sixty 5 days once you're meant to pay predicted taxes, and you haven't any longer paid any with the help of this time in the 300 and sixty 5 days (October), then you definitely ought to on the instant pay 3/4 of the 300 and sixty 5 days's predicted taxes, and pay the final a million/4 with the help of January 15. 3. relating to the question "How am I meant to predicted my tax if i did no longer additionally be responsive to it may strengthen that top? It grew to become into an unpredicted strengthen in incomes": you should use the "annualized earnings approach", meaning that the fee due April 15, 2012 is consistent with 4 circumstances earnings from January a million to March 31; the fee due June 15 is consistent with 2.4 circumstances earnings from January a million to would 31; and the fee due September 15 is consistent with a million.5 circumstances earnings from January a million to August 31. This removes the ought to be responsive to how intense it may strengthen and solves the "unpredicted strengthen" problem. although, tremendously much no person makes use of this technique, because of the fact preserving song of earnings on a month-to-month foundation is basically too a lot of a discomfort.

Answer 3

Don't worry about the first two quarters - just make the payments for the remaining two quarters. As long as you have enough paid in, it's very unlikely to be questioned - and if it is, as long as you paid for the quarter where you got the money, there won't be penalties.