Chance are you don’t need to file estimated taxes, but if you do, the fourth installment of 2008 estimated taxes is due Thursday, January 15th.  Most folks have sufficient tax withheld from their paychecks to cover their tax bill, but if you have additional income, e.g. rental income or significant dividends or capital gains, then you may need to pony up to Uncle Sam every quarter.  I remember that as a graduate student I had to file estimated taxes, as the University didn’t withhold taxes (I never understood why they didn’t).

If you end up owing more than $1000 and you didn’t pay at least 90% of your 2008 tax or 100% of your 2007 tax (whichever is smaller), then you may be subject to penalties.  So, if you need to,  send Uncle a check now.  And don’t forget your state taxes, too.

IRS Form 1040-ES

Tags: estimated taxes

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