Trying to calculate your estimated payments is a lot like trying to see into the future. Unfortunately, CPAs do not have crystal balls. Each year we prepare your estimated payments based on information applicable at the time. However, numerous factors can affect your taxable income, such as significant fluctuations in Schedule C income, large capital gains from sale of stock or property, changes in the number of qualified exemptions, etc. If you have any changes in your tax situation that could affect your tax return, don’t wait until the end of the year for an unpleasant surprise. Call your accountant to assess the situation. A few dollars paid in the middle of the year to adjust estimated payments will more than pay for itself. Remember, the IRS penalizes taxpayers that under withhold.
