Tax Law (Questions About Taxes)/Estimated Income Tax



This is a state (MD) tax question. I retired from working in WV at the end of June, 2013, which means I worked 6 months and got retirement for 6 months in 2013. I also got a bonus for not using my vacation days, gross $8,000.

WV does not take MD state tax out of my retirement so I have to figure out my estimated income tax to pay quarterly. On form 502D (estimated income tax), for 2014, they want the federal adjusted gross income from the 2013 tax return. I'm going to have to fill this form out for my first quarterly payment due by April 15.

My question is this: My federal adjusted gross income from my 2013 federal return is going to be high due to my having worked for 6 months plus the $8k bonus for my unused vacation days. That means my estimated tax will be based on this figure which will be much, much higher than a year of just retirement income which I will have in 2014. This (just the retirement) is what I want to pay taxes on.

Also, my husband's income is soc sec disability. There's supposed to be pension exclusion ($27,800) for that. Wonder how that's handled?

I am lost.

Thanks a lot for any insight.


Thanks for your question.

When your income changes from year to year, as in your case, you can adjust the amount of estimated payments you are making to conform to your current level of income and estimated taxes.

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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