OK, let me see if I've got this straight

[rolanni]

1. We were Evil People because we didn't know that we were going to have a large payment at the end of 2008 which was going to kick us into Tax Liability Overdrive.

1a. When we Realized the Depth of Our Evil, we should have immediately repaired to the time machine so that we could file proper quarterly taxes to the state. We are Doubly Evil for not taking this chance to redeem Honor.

2. Having been discovered in our Evilness, we have been fined, and we are Duly Chastised.

3. However, now that we are known to be Evil, we need to file quarterly state taxes.

3a. The quarterlies must
(a) cover 90% of what we owed this year, even though we're no way going to earn as much money this year as earned last
(b) be exactly the same payment every quarter, but --
(b1) if we overpay the quarterlies, we'll be fined
(b2) if we don't pay the same amount each quarter (which is unlikely in the extreme, given how money flows into this household), we'll be fined, except!
(b2b) if we file an Annualized 2210 with our income tax, explaining in detail when we got which bit of money

...and they say Maine is unfriendly to small business.

Comments

[moon-happy.livejournal.com]

Tip (that you can check with your CPA, which I am not.) Even though I worked for a major corporation, payroll would let me overpay my payroll taxes at the end of the year (in those years when earning would have required I file the estimated taxes.) I did this many, many years. It is not illegal for you or your employer. It is, of course, an inconvenience for your employer but mine did it with a smile. Maybe yours will, too. It's rather like changing your deductions in mid-stream. Good luck for next year.

[moon-happy.livejournal.com]

To clarify, I never filed estimated taxes for the years that I was also employed in a 9 to 5 job. Obviously you have to know what the tax situation will be before the year end; you can't do it after the year closes.

[jhetley.livejournal.com]

I've never had any official problem with different payments in different quarters. That's called "adjusting to changed conditions." But then, the gummint has never declared us to be Evil People, so maybe you're special.

But yeah, Maine and small business, let me show you it . . .

[rolanni.livejournal.com]

I've never had any official problem with different payments in different quarters. That's called "adjusting to changed conditions."

I asked her about this several times, because she was adamant that we'd be fined if we overpaid, too. And she kept bringing up this Annualized 2210 which would keep us from getting fined for non-equal payments.

...It's been a Bad Week, bureaucracy-wise around here.

[brownkitty.livejournal.com]

Time for a second opinion, perhaps?

[jhetley.livejournal.com]

We overpaid the Guv last year, changing conditions again. No fine, no gripe, just a refund check.

[drammar.livejournal.com]

Hie thee to an CPA who does business in Maine, please. Having worked with the taxing authorities in many states (37 of them), I can absolutely say that I've never heard of any penalty for overpayment. That is an absurdity.

[1crowdedhour.livejournal.com]

I have to say the same (though less eloquently).

[nlbarber]

I did the Federal 2210 several times, and it's a b*tch. I seem to recall reading that it's one of the worst forms the IRS has, and is very difficult to complete correctly.

On the other hand, it saved me from a fine once or twice when I could show a lump of income in December so I wasn't underpaid on the earlier quarterlies.

[muehe.livejournal.com]

Usually the people you talk too are not that knowledgeable. Not their fault, they are only given specific information – often this can get miss interrupted flowing down the chain. I would call back, if you get the same person (or a different person who answers the same) asked to talk to their supervisor or manager.

Then, if they spout the same line – pay the money for a CPA.

At least that is what I would do.

HEADLINE: Don't Overpay Your Estimated Taxes

[muehe.livejournal.com]

http://www.insurancenewsnet.com/article.asp?n=1&innID=909752005

FORM 1040ES-ME INSTRUCTIONS

[muehe.livejournal.com]

http://www.maine.gov/REVENUE/forms/1040/2009/09_1040ES%20&%20Vouchers_Feb09.pdf

5.) CHANGES IN INCOME. Even though you are not required to pay
estimated tax on April 15, your expected income may change so that you will
be required to pay estimated tax later in the year. When the change becomes
known and the estimated tax is calculated, payment may be made at one
time on the next installment due date or it may be paid in equal installments
on the remaining due dates. If your estimated tax liability decreases because
of an income change, reduce the remaining installments

The form does say “four equal payments” but I think they missed the clause about changes of income.
Anyway, the way I interpret it (opinion – it is worth about 2 cents) your fist payment has to equal ¼ of 90% of last year. But after that you can change it up to fit your current income.

[elbales]

D:

. . . Ugh. I wish you the best.

[lagilman]

Bleargh?

I have family in the HR Block way -- if you want to e-mail me the details, I can have them double-check things for you. Because that sounds.... well, typical government bullshit, actually, but also worth protesting.

[simianpower.livejournal.com]

Hicks: I say we take off, nuke the site from orbit. *shrugs* It's the only way to be sure.

I'd say stick it to the man, but the man has a bigger stick in this case. I hate bureaucratic doublespeak.

[starthorn.livejournal.com]

This sounds suspiciously like the Department of the Interior has taken over the Maine State tax authority... Can we get Pat Rin to bring his mining ships to Terra and handle the situation like he did at the end of I Dare?

[pgranzeau.livejournal.com]

I thought estimated payments only needed to be made for the quarter in which the money was received?

Oh, state taxes. I assume Maine is unforgiving.