What are the guidelines for making estimated tax payments?

March 22, 2006

Date:  Fri, 10 Mar 2006
From:   Abe

When you exercise options during February, what are the guidelines for making estimated tax payments?

Answer

Date:   Sat, 18 Mar 2006

Hello Abe,

In short, if last year’s income was less than $150,000, be sure last year’s tax is paid in. If last year’s income was $150,000 or more, pay in 110% of last year’s tax. I’ll have a more lengthy explanation in the next newsletter, or you can find it in last year’s April issue.

Good luck!

Mike Gray

For more information about incentive stock options, request our free report, Incentive Stock Options – Executive Tax and Financial Planning Strategies.

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