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Transition year

Submitted by Philip Brewer on March 25, 2008 - 09:08.

You're right that it's really a transition-year issue.  Or rather, a "two transition years" issue.

In my case, last year was actually the transition year--the place I used to work closed in August.

There's a safe-harbor position:  If you send in 100% of what you owed last year, then you're safe.  But that doesn't work for me, because what I owed last year is more than 20 times what I expect to owe this year.  Still, it's always possible that I'll end up earning a lot more in the second half of the year than I've been earning so far.  Obviously, that'd be great.  So, it's nice to know that, if I am so lucky, it wouldn't leave me screwed as far as taxes go.  I can file Schedule AI of form 2210, if I have to.

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