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

Instructions and Help about How Form 2220 Quarterly

Hello, I'm Alan Pink and Ron Deja, and welcome to Tax News Live. Today, we'll be discussing estimated tax payments. If you fail to make a required payment, pay an installment after the due date, or underpay any installment, you may be assessed a penalty. The penalty incurred will be on the portion of estimated tax underpaid from the due date of the installment to the date of the payment or the due date of the tax return, whichever comes first. When you are figuring estimated tax payments, remember you must pay either 100% of last year's tax liability or 90% of your current year's tax liability, whichever is less. If you qualify as a high-income individual, remember there is a limit to the prior year's tax, so be sure to make your payments based on these percentages. If your adjusted gross income is $150,000 or more in the prior tax year, your payment is the lesser of 90% of your current year's tax or 110% of your prior year's tax. If your adjusted gross income is $1 million or more in the current year, your required payment will be 90% of the current year's tax. Please note that this does not apply to farmers or fishermen. Now that you have figured your estimated tax payments, remember to make them on time by following these dates and percentages. The first payment is 30% and is due by April 17, 2012. The second payment is 40% and is due by June 15, 2012. There is no third payment due by September 17, 2012. The fourth payment is 30% and is due by January 15, 2013. Keep these dates in mind and remember to make your required payments on time in order to avoid a penalty. If you need help figuring out your estimated payments,...