John Kerry Fails to Pay Any Estimated Income Tax for 2003

Kerry Tax Return via Tax History Org ^ | 4/16/04 | self

[Too_Bad]

When line 28 [Form 6251] exceeds $307,000, for married filing separately, then $29,000 must be added to the total.

[Dan from Michigan]

I paid quarterly for a couple of years in the late 90's. If I had to, I know DAMN WELL than Johnny STILL has to, since if I was a 'thousandaire' and had to pay it........

[Too_Bad]

The minimum Kerry was supposed to pay during 2003 was $32941. He would have been aware of this, at the latest, by 4/15/03 when he filed his 2002 return because he had sold the painting for an $175,000 profit on 3/26/03. [The $32941 is 110% of his 2002 tax liability, which for married filing separately with AGI over $75,000 is the minimum payment required during the year.]

The irony is that Kerry is calling for a return to the "Pay-Go" or pay-as-you-go system, but he sure doesn't abide by that method when it comes to paying his own taxes.

[stocksthatgoup]

How do you evil freepers know that Teresa didn't pay them?
(/sarcasm)

[Fledermaus]

Yep, he paid NO estimated tax on his other income. He only reported his withheld amount from his Senate salary.

Thus, he paid in FAR LESS than the required 90% (BS law anyway)...but that's typical for Dems...the law doesn't apply to them.

[stocksthatgoup]

Medical Expenses? Is Kerry doctor shopping??? ........

[Too_Bad]

Thus, he paid in FAR LESS than the required 90% (BS law anyway)...but that's typical for Dems...the law doesn't apply to them.

For Kerry [with his big profit in March 2003 from the painting sale] it's 110% since he files separately and his AGI exceeds $75,000.

[MeekOneGOP]

[MeekOneGOP]

Check out the '9%' category ...

[EllaMinnow]

Not paying estimated taxes is not a crime. It merely subjects you to a penalty. And often the penalty is less than the amount of return on investment that you could get by investing the money rather than giving it to the IRS to draw interest on for a year.

Really? 2003 was the frst year that DH and I went from withholding to paying quarterly estimates. I didn't know we had the option of waiting to settle up. How big is the penalty? Like 1 or 2%? And would this method make us more likely to be audited?

[P-Marlowe]

How big is the penalty?

If you don't pay anything at all, you will get hit with a pretty big penalty (like maybe 10% or more). But if less than 10% of your entire tax bill is not paid (as is my case every year) then the penalty is pretty small. I think my overall tax bill was something like $27,000 and my witholding was about $2200 short. The penalty was $7.00. The interest I got on the money was probably something like $40.

If you are going to owe like $30,000 in taxes and you don't pay ANY quarterly taxes, you could get hit with a substantial penalty (probably more than you could get from an S&P investment). But if you only pay in about $27000 in estimateds, your penalty is not likely to be very much. At least that's my experience. But I don't know anything about tax law. I only know what I paid.

[EllaMinnow]

Thanks very much for the reply. It's something to bear in mind, come July 15th.

[jackbill]

Estimated taxes are for the "little people".

[Ciexyz]

He can't even file his taxes correctly, so how's he going to run our government?

[Ciexyz]

That Kerry is a taxing fellar....

Yeah, he was in Pittsburgh on Friday holding hands with Governor Ed Rendell. As soon as Democrat Rendell got in office, out state income tax went up to 3.1 percent. Crooked Philly politician Rendell, he won the governorship with the aid of Pittsburgh and Philly (most of the rest of the state was in the Red/Republican column).

[jackbill]

At any rate if I had just put the estimateds in an interest bearing checking account I would have earned about $40 over the course of the year. So at a minimum I saved $33 by not sending in my estimateds.

Where do you get something like 4% on a checking account? I'm getting about 1/4%.

[P-Marlowe]

Where do you get something like 4% on a checking account?

My calculations were based on about a 1.5% interest bearing money market account. This is pretty common right now. If you are getting 1/4% you need to change banks.

 

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[Dog Gone]

[ConservativeMan55]

[RedBloodedAmerican]

huh?