First year with own business, but paid tax last year as employee. When to pay estimated taxes?
Q. Last April I paid income tax for my employment in 2008 which ended June '08. At the beginning of this year I started my own business which has been profitable, but have not yet paid estimated income taxes. When do I start paying those? April 15th 2010? Should I have paid them in April 2009 (and then Jan 2010)?
Asked by Jens - Fri Oct 23 23:21:41 2009 - - 5 Answers - 0 Comments
A. Estimated taxes are normally paid on or before April 15th, June15th, September 15th and January 15th of the year following the tax year in question. You should have started making estimated tax payment on or before those dates for any quarter that you had a profit.
Answered by Mathew - Fri Oct 23 23:29:59 2009
Q. Last April I paid income tax for my employment in 2008 which ended June '08. At the beginning of this year I started my own business which has been profitable, but have not yet paid estimated income taxes. When do I start paying those? April 15th 2010? Should I have paid them in April 2009 (and then Jan 2010)?
Asked by Jens - Fri Oct 23 23:21:41 2009 - - 5 Answers - 0 Comments
A. Estimated taxes are normally paid on or before April 15th, June15th, September 15th and January 15th of the year following the tax year in question. You should have started making estimated tax payment on or before those dates for any quarter that you had a profit.
Answered by Mathew - Fri Oct 23 23:29:59 2009
Do I have to pay estimated tax?
Q. If I am self employed and my spouse makes 4 times more than I do, do I still have to pay quarterly estimated taxes if at the end of the year we will receive a refund as married filing jointly? Or do I still have to send something in every quarter? I just want to do the correct thing. thanks.
Asked by Luv2Answer - Sat Aug 18 21:24:42 2007 - - 4 Answers - 0 Comments
A. Providing that you do file a joint return and you do end up receiving a refund with everything reported, you do not have to file quarterly estimates. The withholding from your spouse's earnings are covering the taxes for all of your jointly filed income and resulting tax. Should your income get higher, you may want to consider filing quarterly estimates but at this point you appear to be safe.
Answered by IRENE THE BOOKIE - Sat Aug 18 21:44:48 2007
Q. If I am self employed and my spouse makes 4 times more than I do, do I still have to pay quarterly estimated taxes if at the end of the year we will receive a refund as married filing jointly? Or do I still have to send something in every quarter? I just want to do the correct thing. thanks.
Asked by Luv2Answer - Sat Aug 18 21:24:42 2007 - - 4 Answers - 0 Comments
A. Providing that you do file a joint return and you do end up receiving a refund with everything reported, you do not have to file quarterly estimates. The withholding from your spouse's earnings are covering the taxes for all of your jointly filed income and resulting tax. Should your income get higher, you may want to consider filing quarterly estimates but at this point you appear to be safe.
Answered by IRENE THE BOOKIE - Sat Aug 18 21:44:48 2007
If I pay estimated taxes equal to last years tax liability yet own more in 2007 will there be a penalty?
Q. If I pay estimated taxes equal to last years tax liability yet own more in 2007 will there be a penalty?
Asked by popee1212 - Tue Oct 23 13:19:52 2007 - - 2 Answers - 0 Comments
A. No, if you've paid in at least as much as last year's tax liability there won't be a penalty even if you owe more. That's one of the exceptions to owing a penalty if you owe over $1000.
Answered by Judy - Tue Oct 23 14:24:00 2007
Q. If I pay estimated taxes equal to last years tax liability yet own more in 2007 will there be a penalty?
Asked by popee1212 - Tue Oct 23 13:19:52 2007 - - 2 Answers - 0 Comments
A. No, if you've paid in at least as much as last year's tax liability there won't be a penalty even if you owe more. That's one of the exceptions to owing a penalty if you owe over $1000.
Answered by Judy - Tue Oct 23 14:24:00 2007
I forgot pay Estimated Tax on June 15, 2009?
Q. I forgot pay Estimated Tax on June 15, 2009. Today is June 30. The mount is not too large (about $2000). My question, which one is better: pay it now (june 30) for June 15; pay it after three month together with Sept 15 payment? Thanks.
Asked by Lai Y - Tue Jun 30 09:41:33 2009 - - 3 Answers - 0 Comments
A. Pay it now is best. If lack of payment would incur penalties, they will incur less penalties the sooner it is paid.
Answered by Chuckie O - Tue Jun 30 10:23:25 2009
Q. I forgot pay Estimated Tax on June 15, 2009. Today is June 30. The mount is not too large (about $2000). My question, which one is better: pay it now (june 30) for June 15; pay it after three month together with Sept 15 payment? Thanks.
Asked by Lai Y - Tue Jun 30 09:41:33 2009 - - 3 Answers - 0 Comments
A. Pay it now is best. If lack of payment would incur penalties, they will incur less penalties the sooner it is paid.
Answered by Chuckie O - Tue Jun 30 10:23:25 2009
Am I REQUIRED to pay estimated income tax quarterly?
Q. I'd rather keep my money, earning interest on it, than send it to the IRS throughout the year. Is there a law that says I must pay it quarterly instead of paying it all on April 15??
Asked by MizRose - Sat Dec 30 14:47:23 2006 - - 9 Answers - 0 Comments
A. If you have nothing withheld, and don't make estimated tax payments, and pay your tax due when you file your tax return on April 15, you will be charged a penalty for underpayment of estimated taxes. You have to pay at least 90% of your current year tax or 100% of your prior year tax by January 15 either through withholding or estimated tax payments.
Answered by jseah114 - Sat Dec 30 15:35:41 2006
Q. I'd rather keep my money, earning interest on it, than send it to the IRS throughout the year. Is there a law that says I must pay it quarterly instead of paying it all on April 15??
Asked by MizRose - Sat Dec 30 14:47:23 2006 - - 9 Answers - 0 Comments
A. If you have nothing withheld, and don't make estimated tax payments, and pay your tax due when you file your tax return on April 15, you will be charged a penalty for underpayment of estimated taxes. You have to pay at least 90% of your current year tax or 100% of your prior year tax by January 15 either through withholding or estimated tax payments.
Answered by jseah114 - Sat Dec 30 15:35:41 2006
If I pay my quarterly estimated taxes a month late, what will happen to me?
Q. I went on a training grant last year for my PhD and unfortunately, they don't take taxes out of my paycheck. I'm horrible about remembering to pay estimated taxes, although I've saved the money to do it. I realized yesterday that I'm a month late. I've never actually been late before. I pay $330 a quarter to federal and $270 a quarter to state. Anybody know what's gonna happen to me?
Asked by TelomereGuru - Mon Jul 21 15:32:24 2008 - - 3 Answers - 0 Comments
A. Technically, you will owe about $2 in interest for paying the estimate a month late. There's no way the IRS is going to care about that amount of money. Don't sweat it, and keep on paying your remaining estimated taxes on time.
Answered by Chris A2 - Mon Jul 21 15:44:57 2008
Q. I went on a training grant last year for my PhD and unfortunately, they don't take taxes out of my paycheck. I'm horrible about remembering to pay estimated taxes, although I've saved the money to do it. I realized yesterday that I'm a month late. I've never actually been late before. I pay $330 a quarter to federal and $270 a quarter to state. Anybody know what's gonna happen to me?
Asked by TelomereGuru - Mon Jul 21 15:32:24 2008 - - 3 Answers - 0 Comments
A. Technically, you will owe about $2 in interest for paying the estimate a month late. There's no way the IRS is going to care about that amount of money. Don't sweat it, and keep on paying your remaining estimated taxes on time.
Answered by Chris A2 - Mon Jul 21 15:44:57 2008
How can I pay US Estimated Tax Payments using a foreign bank account?
Q. How can I pay US Estimated Tax Payments using a foreign bank account?
Asked by jettoboyzinc - Tue Feb 10 18:13:20 2009 - - 1 Answers - 0 Comments
Q. How can I pay US Estimated Tax Payments using a foreign bank account?
Asked by jettoboyzinc - Tue Feb 10 18:13:20 2009 - - 1 Answers - 0 Comments
Do I have to pay estimated taxes on short term gains?
Q. Does anyone happen to know if I need to pay quarterly estimated taxes on short term gains (from sale of stock options) or do I have the option to do it all at once when I file my 2007 taxes in April? Are there penalties if I wait?
Asked by Amy P - Thu Oct 25 15:21:49 2007 - - 4 Answers - 0 Comments
A. If your withholding is enough to cover your 2006 tax due AND 2006 taxes were for a full 12 month period you do not need to pay an estimated tax.
Answered by don_sv_az - Thu Oct 25 15:31:46 2007
Q. Does anyone happen to know if I need to pay quarterly estimated taxes on short term gains (from sale of stock options) or do I have the option to do it all at once when I file my 2007 taxes in April? Are there penalties if I wait?
Asked by Amy P - Thu Oct 25 15:21:49 2007 - - 4 Answers - 0 Comments
A. If your withholding is enough to cover your 2006 tax due AND 2006 taxes were for a full 12 month period you do not need to pay an estimated tax.
Answered by don_sv_az - Thu Oct 25 15:31:46 2007
Do I need to pay estimated taxes on babysitting money?
Q. I will be earning $60/week. I believe I do, even though I know that most people don't. We can't really afford to pay taxes, because we need this money, but I don't want it to catch up with me if we don't pay. I will also be working a part time job where the taxes are automatically withheld. It really ticks me off when I see tax money going to special interest groups and projects and just being spent so much when our government is already in debt.
Asked by Amy - Fri Oct 2 11:33:50 2009 - - 6 Answers - 0 Comments
A. Do you know if your client is reporting your payments? They might try to claim them. Though I think you can only claim baby sitting if it is every day, like daycare, so the parents can work. You can't claim if it is just for movie or date night. Are you being paid cash? If that is case, you would probably get away without claiming. If that is your only job, then maybe you will make 3000 this year, and that is probably less than your federal exemption. You can file on your own if you like--the right thing to do, but I would not worry about paying estimated taxes. You have to make a lot more money than 3k a year! You will probably get a refund since the amount is so low.
Answered by Steph in NYC - Fri Oct 2 12:37:10 2009
Q. I will be earning $60/week. I believe I do, even though I know that most people don't. We can't really afford to pay taxes, because we need this money, but I don't want it to catch up with me if we don't pay. I will also be working a part time job where the taxes are automatically withheld. It really ticks me off when I see tax money going to special interest groups and projects and just being spent so much when our government is already in debt.
Asked by Amy - Fri Oct 2 11:33:50 2009 - - 6 Answers - 0 Comments
A. Do you know if your client is reporting your payments? They might try to claim them. Though I think you can only claim baby sitting if it is every day, like daycare, so the parents can work. You can't claim if it is just for movie or date night. Are you being paid cash? If that is case, you would probably get away without claiming. If that is your only job, then maybe you will make 3000 this year, and that is probably less than your federal exemption. You can file on your own if you like--the right thing to do, but I would not worry about paying estimated taxes. You have to make a lot more money than 3k a year! You will probably get a refund since the amount is so low.
Answered by Steph in NYC - Fri Oct 2 12:37:10 2009
Are all corporations required to pay an estimated tax payment each quarter?
Q. Is this payed regardless of whether the company is making a profit or not?
Asked by xawellington - Sun Jul 8 15:20:17 2007 - - 2 Answers - 1 Comments
A. This is a bit complex so please bear through the basic explanation below. 1.First of all, this only applies to a C corporation. An S corporation is taxed at the shareholder level (with rare exceptions for which your CPA will counsel you) so any taxes attributable to the S corporation s income would be included in the estimated payment made by the owner(s). (If your corporation is a C corporation, please look into converting it to an S corporation with the help of your CPA you may be paying too much in tax unnecessarily.) 2.Secondly, different rules apply to large corporations, which are corporations with at least $1 million of modified taxable income in any of the last 3 years and corporations that are not define as large. [cont.]
Answered by Average Joe Billy Bob - Sun Jul 8 17:17:51 2007
Q. Is this payed regardless of whether the company is making a profit or not?
Asked by xawellington - Sun Jul 8 15:20:17 2007 - - 2 Answers - 1 Comments
A. This is a bit complex so please bear through the basic explanation below. 1.First of all, this only applies to a C corporation. An S corporation is taxed at the shareholder level (with rare exceptions for which your CPA will counsel you) so any taxes attributable to the S corporation s income would be included in the estimated payment made by the owner(s). (If your corporation is a C corporation, please look into converting it to an S corporation with the help of your CPA you may be paying too much in tax unnecessarily.) 2.Secondly, different rules apply to large corporations, which are corporations with at least $1 million of modified taxable income in any of the last 3 years and corporations that are not define as large. [cont.]
Answered by Average Joe Billy Bob - Sun Jul 8 17:17:51 2007
How to find an estimated tax payment record?
Q. I paid estimated tax in 2006, but now I forgot how much and when I paid it! My bank does not keep check record of over 6 months, and I can't find my old check book. Can someone tell me how/where to get the information? I don't want to pay double tax or penalty!
Asked by Aqua - Fri Mar 30 03:44:53 2007 - - 4 Answers - 0 Comments
A. Call the IRS 800-829-1040. Fridays usually have the lowest call volume. If your accountant instructed you to pay the amount, he should have record of the amount as well. The estimated tax vouchers & filing instructions may also have been included with your 2005 tax return.
Answered by tma - Fri Mar 30 03:48:49 2007
Q. I paid estimated tax in 2006, but now I forgot how much and when I paid it! My bank does not keep check record of over 6 months, and I can't find my old check book. Can someone tell me how/where to get the information? I don't want to pay double tax or penalty!
Asked by Aqua - Fri Mar 30 03:44:53 2007 - - 4 Answers - 0 Comments
A. Call the IRS 800-829-1040. Fridays usually have the lowest call volume. If your accountant instructed you to pay the amount, he should have record of the amount as well. The estimated tax vouchers & filing instructions may also have been included with your 2005 tax return.
Answered by tma - Fri Mar 30 03:48:49 2007
why do i have tp pay estimated tax?
Q. why do i have tp pay estimated tax?
Asked by shmegs102 - Sun Jul 6 16:31:14 2008 - - 4 Answers - 0 Comments
A. First off you don't have to make estimate tax payments. However, at the end of the year if you haven't paid in any tax or too little tax the IRS will assess penalty and interest per quarter. I have clients that pay in estimated tax payments and some that don't and fork up the extra cash. If you are self employed, it's probably a good idea to pay something in every quarter, also think about self employed profit sharing,IRAs to reduce your tax liability. There are alot of ways to lowering your tax liability, talk to a local CPA for help.
Answered by Melissa D - Sun Jul 6 18:06:00 2008
Q. why do i have tp pay estimated tax?
Asked by shmegs102 - Sun Jul 6 16:31:14 2008 - - 4 Answers - 0 Comments
A. First off you don't have to make estimate tax payments. However, at the end of the year if you haven't paid in any tax or too little tax the IRS will assess penalty and interest per quarter. I have clients that pay in estimated tax payments and some that don't and fork up the extra cash. If you are self employed, it's probably a good idea to pay something in every quarter, also think about self employed profit sharing,IRAs to reduce your tax liability. There are alot of ways to lowering your tax liability, talk to a local CPA for help.
Answered by Melissa D - Sun Jul 6 18:06:00 2008
Will Obama let Congress vote for a carbon tax on the air we exhale?Will we have to pay an estimated usage tax?
Q. A carbon emission tax like the ones they are going to implement on all Gas powered vehicles,also added to each gallon of fuel sold to consumers. That mean Co2 that feeds Plants and trees.
Asked by What say you? - Fri Jan 2 21:14:31 2009 - - 11 Answers - 0 Comments
A. I have not heard that plan but I have heard that all the people using Solar that are getting a rebate and tax breaks are going o be charged a fee after the systems are paid for will be asked to pay for sunshine. Can you believe that the next thing will be for wind but the politicians will have us covered with all the hot air they are putting out we should be OK. First they will infringe on our freedoms and then they will charge us for natural resources. It is no wonder that weapon sales are up. I wish I had some sources on this but you do not have them either.
Answered by Pablo - Fri Jan 2 21:36:16 2009
Q. A carbon emission tax like the ones they are going to implement on all Gas powered vehicles,also added to each gallon of fuel sold to consumers. That mean Co2 that feeds Plants and trees.
Asked by What say you? - Fri Jan 2 21:14:31 2009 - - 11 Answers - 0 Comments
A. I have not heard that plan but I have heard that all the people using Solar that are getting a rebate and tax breaks are going o be charged a fee after the systems are paid for will be asked to pay for sunshine. Can you believe that the next thing will be for wind but the politicians will have us covered with all the hot air they are putting out we should be OK. First they will infringe on our freedoms and then they will charge us for natural resources. It is no wonder that weapon sales are up. I wish I had some sources on this but you do not have them either.
Answered by Pablo - Fri Jan 2 21:36:16 2009
Estimated Tax Question on Sale of Stock?
Q. My wife and I made a 25,000 on a sale of Stock in 2006. We do not aniticipate another capital gain like this in 2007. Do we need to pay estimated taxes for 2007?
Asked by srgummere - Thu Apr 19 12:15:23 2007 - - 6 Answers - 0 Comments
A. If you had a $25,000 capital gain in 2006 - then you must pay that on your 2006 taxes (due last Tuesday). The only question is if that capital gain was long-term or short-term. If you purchased the stock more than a year from the time you sold it, you get a special tax rate. Google 2006 federal capital gains tax for more information. There is no reason to pay 2007 taxes now until April 15th of 2008. However, capital gains incurred in 2006 were already due.
Answered by mukwonago53149 - Thu Apr 19 12:21:51 2007
Q. My wife and I made a 25,000 on a sale of Stock in 2006. We do not aniticipate another capital gain like this in 2007. Do we need to pay estimated taxes for 2007?
Asked by srgummere - Thu Apr 19 12:15:23 2007 - - 6 Answers - 0 Comments
A. If you had a $25,000 capital gain in 2006 - then you must pay that on your 2006 taxes (due last Tuesday). The only question is if that capital gain was long-term or short-term. If you purchased the stock more than a year from the time you sold it, you get a special tax rate. Google 2006 federal capital gains tax for more information. There is no reason to pay 2007 taxes now until April 15th of 2008. However, capital gains incurred in 2006 were already due.
Answered by mukwonago53149 - Thu Apr 19 12:21:51 2007
when i pay my quarterly estimated taxes does that go towards my self employment tax?
Q. is federal income tax the same as self employment tax?
Asked by Lindsey C - Tue Mar 6 20:50:13 2007 - - 4 Answers - 0 Comments
A. Yes, your quarterly estimated taxes go towards your TOTAL federal tax liability, which includes self-employment tax (social security/medicare).
Answered by tma - Tue Mar 6 21:01:30 2007
Q. is federal income tax the same as self employment tax?
Asked by Lindsey C - Tue Mar 6 20:50:13 2007 - - 4 Answers - 0 Comments
A. Yes, your quarterly estimated taxes go towards your TOTAL federal tax liability, which includes self-employment tax (social security/medicare).
Answered by tma - Tue Mar 6 21:01:30 2007
What quarter do I claim the EITC when paying estimated tax?
Q. I will be freelancing starting in January and am trying to quickly get up to speed on how to do my taxes. If I will be claiming the EITC, when should I do so?
Asked by dominicsmom - Mon Dec 22 17:54:16 2008 - - 2 Answers - 0 Comments
A. You can spread it out. The estimated tax is supposed to be your best guess as to what you'll actually owe, so if you are getting EIC you will owe less.
Answered by Judy - Mon Dec 22 21:04:28 2008
Q. I will be freelancing starting in January and am trying to quickly get up to speed on how to do my taxes. If I will be claiming the EITC, when should I do so?
Asked by dominicsmom - Mon Dec 22 17:54:16 2008 - - 2 Answers - 0 Comments
A. You can spread it out. The estimated tax is supposed to be your best guess as to what you'll actually owe, so if you are getting EIC you will owe less.
Answered by Judy - Mon Dec 22 21:04:28 2008
What is the best way to pay 2007 estimated taxes in December?
Q. If a person forgot to make quarterly payments for 2007 estimated taxes, is it better to use four Form 1040-ES and pay the amount with 4 checks? or pay the whole amount with one check and one Form 1040-ES?
Asked by Mono - Fri Dec 14 19:36:26 2007 - - 2 Answers - 0 Comments
A. Just send the voucher in with a check. IRS will be happy to take your money any time. Let it figure out if it is worth while to compute a penalty
Answered by wartz - Fri Dec 14 19:39:31 2007
Q. If a person forgot to make quarterly payments for 2007 estimated taxes, is it better to use four Form 1040-ES and pay the amount with 4 checks? or pay the whole amount with one check and one Form 1040-ES?
Asked by Mono - Fri Dec 14 19:36:26 2007 - - 2 Answers - 0 Comments
A. Just send the voucher in with a check. IRS will be happy to take your money any time. Let it figure out if it is worth while to compute a penalty
Answered by wartz - Fri Dec 14 19:39:31 2007
Tax Help: Estimated Taxes Required for Futures Accounts?
Q. I invest in commodity and financial futures and would like to know whether I need to pay quarterly estimates taxes based on appreciation in my account value at the end of each quarter. This investment can be quite volatile so a gain at the end of Quarter 1 may quickly disappear in Quarter 2. I don't want to pay taxes that may be refunded eventually. Thanks for any help!
Asked by newport229 - Sat Apr 5 11:51:02 2008 - - 3 Answers - 0 Comments
Q. I invest in commodity and financial futures and would like to know whether I need to pay quarterly estimates taxes based on appreciation in my account value at the end of each quarter. This investment can be quite volatile so a gain at the end of Quarter 1 may quickly disappear in Quarter 2. I don't want to pay taxes that may be refunded eventually. Thanks for any help!
Asked by newport229 - Sat Apr 5 11:51:02 2008 - - 3 Answers - 0 Comments
My husband is an independent consultant who needs to pay estimated taxes. Need set up help with forms?
Q. My husband is an independent consultant who needs to pay estimated taxes. Need set up help with forms?
Asked by Nena - Fri Jul 7 13:49:13 2006 - - 3 Answers - 0 Comments
A. Get Pub. 505 and Form 1040 ES from IRs. Here is the link: You will need to do the same for the state(s) in which he works.
Answered by Mr. October - Fri Jul 7 13:55:13 2006
Q. My husband is an independent consultant who needs to pay estimated taxes. Need set up help with forms?
Asked by Nena - Fri Jul 7 13:49:13 2006 - - 3 Answers - 0 Comments
A. Get Pub. 505 and Form 1040 ES from IRs. Here is the link: You will need to do the same for the state(s) in which he works.
Answered by Mr. October - Fri Jul 7 13:55:13 2006
Payed estimated tax when i got last years refund. Only made 1k this year what steps do i take for a refund?
Q. When I got a refund last year (around 1,000), i just opted to roll it over for this years taxes assuming i would make alot more than i did. Due to some "stuff" I only made $1,092 in 08. How do i go about getting the needed documents and submitting my taxes this year in order to get the taxes i overpaid back?
Asked by Chase B - Sat Feb 28 22:44:42 2009 - - 2 Answers - 0 Comments
A. Fill out your taxes as normal until you get to the Payments/Withholding area on the back page. The amount that you left with the IRS from last year would be entered on line 63 of the 1040, "amount applied from 2007 return". (Just like putting in the taxes withheld from your paycheck, just on the next line.) But you will need to have the precise number, so you may want to find a copy of last year's taxes. If you do not have a copy, you can call the IRS, at 1-800-829-1040, and ask for a return transcript, that will show all the information from last year's return, including the amount you left with them. I hope this helps, Shannon C
Answered by HRBlock Shannon C - Sat Feb 28 22:57:30 2009
Q. When I got a refund last year (around 1,000), i just opted to roll it over for this years taxes assuming i would make alot more than i did. Due to some "stuff" I only made $1,092 in 08. How do i go about getting the needed documents and submitting my taxes this year in order to get the taxes i overpaid back?
Asked by Chase B - Sat Feb 28 22:44:42 2009 - - 2 Answers - 0 Comments
A. Fill out your taxes as normal until you get to the Payments/Withholding area on the back page. The amount that you left with the IRS from last year would be entered on line 63 of the 1040, "amount applied from 2007 return". (Just like putting in the taxes withheld from your paycheck, just on the next line.) But you will need to have the precise number, so you may want to find a copy of last year's taxes. If you do not have a copy, you can call the IRS, at 1-800-829-1040, and ask for a return transcript, that will show all the information from last year's return, including the amount you left with them. I hope this helps, Shannon C
Answered by HRBlock Shannon C - Sat Feb 28 22:57:30 2009
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