OK, let me see if I've got this straight
Thursday, April 30th, 2009 05:44 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
rolanni1. 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.
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.
![[identity profile]](https://www.dreamwidth.org/img/silk/identity/openid.png){kind=small}
FORM 1040ES-ME INSTRUCTIONS
Date: 2009-05-01 07:21 pm (UTC)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.