New Millennium Tax Planning

摘要

The Dawning of the new millennium is also the fresh start of a new tax year. While the last thing on your mind is 2000 taxes, that is exactly when you should start planning. The earlier you design a strategy, the more opportunities you have to correct, amend, or reformulate it as economic and financial changes demand. If you pay estimated tax, Jan. 15 is the due date for your final payment for 1999. Your first 2000 estimated payment isn't due until April 15. You don't want to pay any more than you have to, so you base your 2000 estimated tax payment on your 1999 total tax, which you should know by April 15. If you pay at least 100% (106% if your 1999 adjusted gross income is more than $150,000) of your 1999 total tax, even if you owe more, there will be no interest or penalty.