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  • Nonrefumdable credits and estimated tax

    From Stan Brown@21:1/5 to All on Mon Apr 3 10:48:49 2023
    A nonredundable credit for 2022 was larger than my tax on Form 1040
    line 16, so total tax (line 24) was zero for 2022. I had no
    refundable credits.

    As I understand it, after reading instructions for Form 1040-ES, if
    my 2022 Form 1040 line 24 for 2022 (tax minus nonrefundable credits)
    was zero, then I do not need to pay estimated taxes for 2023 but can
    wait and pay a lump sum in April 2024. (I don't think any of the
    special instructions on page 6 apply to me. I'm not a farmer or
    fisherman, didn't have AGI above $150K, didn't file a joint return,
    and did file a 2022 return for a 12-month year.)

    I want to make sure I'm not missing something, so I don't let myself
    in for a penalty. Am I reading the instructions correctly, and owing
    zero after nonrefundable credits in 2022 means I do not have to pay
    estimated taxes for 2023? Or have I misinterpreted somehow?

    Thanks!

    --
    Stan Brown, Tehachapi, California, USA https://BrownMath.com/
    Shikata ga nai...

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

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    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From Alan@21:1/5 to Stan Brown on Mon Apr 3 17:04:40 2023
    On Monday, April 3, 2023 at 7:49:00 AM UTC-7, Stan Brown wrote:
    A nonredundable credit for 2022 was larger than my tax on Form 1040
    line 16, so total tax (line 24) was zero for 2022. I had no
    refundable credits.

    As I understand it, after reading instructions for Form 1040-ES, if
    my 2022 Form 1040 line 24 for 2022 (tax minus nonrefundable credits)
    was zero, then I do not need to pay estimated taxes for 2023 but can
    wait and pay a lump sum in April 2024. (I don't think any of the
    special instructions on page 6 apply to me. I'm not a farmer or
    fisherman, didn't have AGI above $150K, didn't file a joint return,
    and did file a 2022 return for a 12-month year.)

    I want to make sure I'm not missing something, so I don't let myself
    in for a penalty. Am I reading the instructions correctly, and owing
    zero after nonrefundable credits in 2022 means I do not have to pay
    estimated taxes for 2023? Or have I misinterpreted somehow?

    Thanks!

    --
    Stan Brown, Tehachapi, California, USA https://BrownMath.com/
    Shikata ga nai...

    --
    Yes you are correct with two caveats: You also have to have been a US Citizen or Resident Alien for the full year and 2022 was a full year.

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From Stan Brown@21:1/5 to Alan on Mon Apr 3 19:34:57 2023
    On Mon, 3 Apr 2023 17:04:40 EDT, Alan wrote:

    On Monday, April 3, 2023 at 7:49:00�AM UTC-7, Stan Brown wrote:
    I want to make sure I'm not missing something, so I don't let myself
    in for a penalty. Am I reading the instructions correctly, and owing
    zero after nonrefundable credits in 2022 means I do not have to pay estimated taxes for 2023? Or have I misinterpreted somehow?

    Yes you are correct with two caveats: You also have to have been a US Citizen or Resident Alien for the full year and 2022 was a full year.

    Thanks, Alan. I qualify on both counts, so I guess I'm good ... for
    this year.

    My 2023 total tax will be high enough that I'll need to pay estimated
    tax in 2024 to avoid penalties.

    --
    Stan Brown, Tehachapi, California, USA https://BrownMath.com/
    Shikata ga nai...

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)