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Old 04-01-2013, 06:36 PM
 
11 posts, read 18,256 times
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I never had to deal with estimated taxes and am confused. For my 2011 taxes I sold stocks at a gain and had the first half of my 2010 Roth conversion due. When I filed my taxes I owed over $1000 to Massachusetts.

I received vouchers for the state for estimated taxes for 2013.

When I filed my 2012 taxes, I had more gains and the rest of the Roth conversion and owed the state about $800.

My question, I am now unemployed and am having taxes taken out of the unemployment checks. I have no idea when I will work again or what my salary will be. For 2013 I have no Roth conversion and may sell a fund at a loss so I will not have to deal with taxes at the end of the year as I did in previous years. I am not sure if I should send in a payment for the first voucher which is due by Mid April. I believe I will owe less then $400 to the state.

Would appreciate any assistance.

Thanks
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Old 04-01-2013, 07:14 PM
 
Location: Needham, MA
8,543 posts, read 14,020,436 times
Reputation: 7929
Do you have a friend who is an accountant who can help you?
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Old 04-03-2013, 08:20 AM
 
Location: 42°22'55.2"N 71°24'46.8"W
4,848 posts, read 11,810,036 times
Reputation: 2962
If you have no Roth conversion in 2013 then why would you send in the estimated tax payment? Those payment vouchers are automatically generated by the tax software when you filed your 2012 taxes because you owed more taxes than what was withheld from your paycheck. Since you don't plan on having any taxable income in 2013 except for your unemployment checks you don't need to send in those vouchers. Like you said, your taxes in 2013 will be lower than what you paid in 2012. You can also find a Form W-4 calculator online to determine if you're withholding enough in 2013. If you are, then there's no need to send in the estimated tax payment voucher.

Disclosure: Although I am a CPA, I am not representing myself as such and assume no liability for my advice.
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Old 04-03-2013, 08:29 AM
 
278 posts, read 703,131 times
Reputation: 270
Quote:
Originally Posted by Parsec View Post
If you have no Roth conversion in 2013 then why would you send in the estimated tax payment? Those payment vouchers are automatically generated by the tax software when you filed your 2012 taxes because you owed more taxes than what was withheld from your paycheck. Since you don't plan on having any taxable income in 2013 except for your unemployment checks you don't need to send in those vouchers. Like you said, your taxes in 2013 will be lower than what you paid in 2012. You can also find a Form W-4 calculator online to determine if you're withholding enough in 2013. If you are, then there's no need to send in the estimated tax payment voucher.

Disclosure: Although I am a CPA, I am not representing myself as such and assume no liability for my advice.
this.

also, nice see a fellow CPA on here
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Old 04-03-2013, 06:55 PM
 
Location: 42°22'55.2"N 71°24'46.8"W
4,848 posts, read 11,810,036 times
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Quote:
Originally Posted by brent s View Post
this.

also, nice see a fellow CPA on here
Ah, I have those 3 letters but I don't work in public anymore. No way Jose. I like my 3-day weekends during tax season
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Old 04-03-2013, 07:26 PM
 
278 posts, read 703,131 times
Reputation: 270
Quote:
Originally Posted by Parsec View Post
Ah, I have those 3 letters but I don't work in public anymore. No way Jose. I like my 3-day weekends during tax season
I'm in public and don't touch taxes.
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Old 04-03-2013, 07:50 PM
 
Location: 42°22'55.2"N 71°24'46.8"W
4,848 posts, read 11,810,036 times
Reputation: 2962
Quote:
Originally Posted by brent s View Post
I'm in public and don't touch taxes.
Then get back to work! j/k...
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