Quarterly estimates and Turbo Tax


O

ok

I had a large capital gain in mid-June related to my company's IPO. I paid
estimated taxes before Sept 1, 2004 in an amount that looks to be greater
than I owed. I'm getting a refund. The problem is Turbo Tax says even
though I overpaid it wasn't in the correct time frame, so there is a penalty
that will reduce my refund. One of their options is to do a quarter by
quarter income statement to verify I paid in a timely fashion and there in
lies my question. How accurate does this have to be? For example, if I was
paid $100 in interest for the year, must I actually figure out how much was
paid each quarter, or can I approximate it and say $25 per and be done with?
Does the total have to exactly match my 1040 gross income?
Thanks in advance
 
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P

Paul

ok said:
I had a large capital gain in mid-June related to my company's IPO. I paid
estimated taxes before Sept 1, 2004 in an amount that looks to be greater
than I owed. I'm getting a refund. The problem is Turbo Tax says even
though I overpaid it wasn't in the correct time frame, so there is a
penalty
that will reduce my refund. One of their options is to do a quarter by
quarter income statement to verify I paid in a timely fashion and there in
lies my question. How accurate does this have to be? For example, if I
was
paid $100 in interest for the year, must I actually figure out how much
was
paid each quarter, or can I approximate it and say $25 per and be done
with?

Form something that was earned ratable over the year, like interest on an
account you hada ll year, just allocate it per month.


Does the total have to exactly match my 1040 gross income?

I would think so, or at least to the nearest few dollars anyway.

Turbo Tax will tell you if it needs to be that accurate.
 

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