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Video instructions and help with filling out and completing Fill Form 2220 Quarterly

Instructions and Help about Fill Form 2220 Quarterly

Hi, I'm April. Here is your tax fact: Ever hear the term "quarterly" is bandied about by your accountant and maybe some of your friends, and wonder what it is? Do you think there's something that you have to do that you're not aware of? Well, "quarterly's" are just estimated tax payments that you make throughout the year - yes, every quarter, hence the name. They help you prepay the tax if you're going to owe too much at the end of the year. The IRS generally wants you to pay the tax ahead of time, or they might penalize you for federal tax returns. If you owe the government more than a thousand dollars, you may be charged interest and penalties. To prevent that from happening, you just need to pay at least 100 percent, and in some cases 105 percent, of your prior year's tax bill. Then, it won't matter how much you owe at the end of the year. You could owe a hundred thousand dollars and not pay any interest or penalties, but check with your tax preparer who can help you calculate what's called your safe harbor amount. So, there are several situations where you could end up having to pay quarterly's. One of those quarterly events would be being self-employed, selling a stock with a sizable gain, having high interest or dividend income, and sometimes if you have multiple jobs, you may not have enough tax withholding. But before you decide to pay quarterly's yourself, you may already have an opportunity to have the federal taxes withheld from your employer. So, a simple way to do that would just be to refile your W-4 at work and have more taxes withheld. Again, a tax preparer can help you calculate how much more you should...