Results 1 to 7 of 7

Thread: So I want to start filing taxes quarterly instead of yearly...

  1. #1
    Banned
    Joined
    Aug 2011
    Location
    Aboard The Spaceship
    Posts
    4,787
    Thanks
    3,183
    Thanked 10,142 Times in 3,290 Posts
    My Mood
    Breezy

    Default So I want to start filing taxes quarterly instead of yearly...

    So I want to start filing my taxes quarterly instead of yearly. This probably sounds like a dumb question, but where do I go from here? How do I know the cut-off days, etc.?

    Is there an easy link or pdf that explains this easily somewhere? Thanks

  2. #2
    Senior Member CherryPepper's Avatar
    Joined
    Feb 2011
    Posts
    113
    Thanks
    23
    Thanked 48 Times in 26 Posts

    Default Re: So I want to start filing taxes quarterly instead of yearly...


  3. The Following User Says Thank You to CherryPepper For This Useful Post:


  4. #3
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: So I want to start filing taxes quarterly instead of yearly...

    In point of fact, independent contractor dancers are required to file quarterly estimated taxes and required to pay quarterly estimated tax payments. Technically speaking, the actual filing of a complete tax return still only happens once a year ( by April 15th ). There is a very complete discussion of this process in the top sticky thread at

  5. #4
    Newbie
    Joined
    May 2008
    Posts
    13
    Thanks
    0
    Thanked 1 Time in 1 Post

    Default Re: So I want to start filing taxes quarterly instead of yearly...

    Yes, you want to do an estimated tax payment quarterly, but you don't have to do it quarterly, you can do pay it all so long as it is post marked before april 15th. quarterly just makes it easier to pay in so you don't have to pay such a huge amount. the things is, you do want to pay your taxes. its honest, gives you something towards social security, and unless you are making tons, you should get money back--especially if you have kids and are married, and did pay in. What you should do, is go down to Liberty Tax Service and talk to them, the info is free, and they will tell you exactly what you need to be doing. It's that easy.

  6. #5
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: So I want to start filing taxes quarterly instead of yearly...

    ^^^ that's not exactly accurate. From an IRS viewpoint, taxes are owed on the next quarterly filing date after the income is earned. Thus if one chooses NOT to send in the quarterly estimated tax checks, the IRS can tack on interest ( and potentially penalty charges ) which will add to the total amount of tax money that must be paid when the annual return is finally filed.

  7. #6
    Newbie
    Joined
    May 2008
    Posts
    13
    Thanks
    0
    Thanked 1 Time in 1 Post

    Default Re: So I want to start filing taxes quarterly instead of yearly...

    As I understood it as it was explained to me from a tax preparer is: you do not have to pay in quarterly if you do not want to. The reason they let you pay quarterly and recommend it, is so that you do not have to pay a huge chunk all at once. But, if you want to pay it all at once(like if you know you will owe in the end), you just have to make sure you have it in before April 15th when taxes are due. I am not sure you would get taxed interest on not paying quarterly taxes, I was not told of that whatsoever. But, if you heard that-or even know that, then I would say it is definitley worth talking to a professional about it to make sure 100%. But beware, not all those tax payer people even know 100%. Good for you though for paying your taxes.

  8. #7
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: So I want to start filing taxes quarterly instead of yearly...

    you do not have to pay in quarterly if you do not want to.
    No offense, but I highly recommend that you change tax preparers to someone who is more familiar with small business taxes.



    (snip)"self-employed workers still have to pay taxes, just like everyone else. And they don't have the luxury of waiting until April 15 to pay all of their taxes for the previous year -- the IRS wants its money faster than that. Independent contractors have to pay tax on their estimated annual income in four payments, spread out over each year. These payments are called estimated taxes and are used to cover income taxes and self-employment taxes (Social Security and Medicare taxes).

    Because of this estimated tax requirement, you need to budget your money carefully. If you don't set aside enough of your earnings to pay your estimated taxes, you could face a huge tax bill on April 15, and possibly penalties for not paying estimated taxes. You might also have a tough time coming up with the money to cover the amount you owe.

    Who Must Pay Estimated Taxes?

    If, like the vast majority of self-employed people, you are a sole proprietor (that is, you own your own business), you have to pay estimated taxes if you expect to owe at least $1,000 in federal tax for the year.

    However, if you didn't have to pay any taxes last year -- for example, because your business didn't make a profit or because you weren't working -- you don't have to pay any estimated tax this year, no matter what you earn. This rule applies only if you were a U.S. citizen or resident for the year and your tax return for the previous year covered the entire 12 months.

    How Much Estimated Tax You Must Pay

    You should figure out how much estimated tax to pay after completing your tax return for the previous year. Most people want to pay as little estimated tax as possible, so they can earn interest on their money instead of handing it over to the IRS. However, the IRS imposes penalties if you don't pay enough estimated tax. You can avoid these penalties by paying the lesser of:
    •90% of your total tax due for the current year, or
    •100% of the tax you paid the previous year (or possibly more, if you're a high-income taxpayer).

    When to Pay Estimated Tax

    You usually have to pay estimated tax in four installments, starting on April 15. However, you don't have to start making payments until you actually earn income. If you don't receive any income by March 31, you can skip the April 15 payment and make only three payments for the year, starting on June 15. If you don't receive any income by May 31, you can skip the June 15 payment as well, and so on."(snip)

    (snip)"Penalties for Underpaying Your Estimated Taxes

    The IRS imposes a fine if you underpay your estimated taxes. You have to pay the taxes due plus a percentage penalty for each day your estimated taxes went unpaid. This percentage is set by the IRS each year. In recent years, the penalty has ranged from 6% to 8% annually.

    This penalty is only a bit higher than the interest you'd have to pay on borrowed money. Many self-employed people decide to pay the penalty at the end of the year rather than taking money out of their businesses during the year to pay estimated taxes. If you decide to follow their lead, make sure you pay all of the taxes you owe for the year by April 15 of the following year. If you don't, the IRS will tack on additional interest and penalties -- and quickly make it prohibitively expensive to pay late."(snip)

    So, technically speaking, any indepedent contractor tax filer can decide NOT to make the required quarterly estimated tax payments in exchange for having to pay additional money to the IRS next April 15th for penalty charges and interest charges due on the unpaid estimated taxes. This additional money is over and above the amount of money due for taxes on the income itself. It is generally agreed that the IRS will never pursue an independent contractor for non-payment of estimated taxes PROVIDING that said independent contractor cuts the IRS a check by April 15th to cover not only the self-employment taxes and federal income taxes due on the previous year's income, but also the penalty and interest charges due as the result of their deliberate under-payment of quarterly estimated taxes. However, in certain circumstances, this means that the size of that April 15th check may comprise 30%+ of total previous year's gross income.

    However, if as your tax preparer points out, the independent contractor is unable to come up with the cash to back that huge check to the IRS on April 15th, then things will absolutely turn serious in a hurry !!! Once the April 15th deadline is crossed, not having sufficient funds to square up with the IRS escalates the situation by bringing into play yet more penalty and interest charges as well as serious collection efforts.

    ~
    Last edited by Melonie; 10-25-2011 at 12:30 PM.

Similar Threads

  1. Paying quarterly taxes vs. one big yearly chunk
    By Diamond Dust in forum Other Work
    Replies: 16
    Last Post: 04-08-2011, 03:13 AM
  2. Benefits of filing/not filing taxes?
    By Autumn Lily in forum Newbie Board
    Replies: 5
    Last Post: 12-30-2009, 05:35 PM
  3. Replies: 8
    Last Post: 01-29-2007, 07:54 PM
  4. filing quarterly?
    By tori1982 in forum Dollar Den
    Replies: 8
    Last Post: 04-21-2006, 02:40 PM
  5. Filing Quarterly
    By julzgulz in forum Dollar Den
    Replies: 7
    Last Post: 01-16-2005, 03:34 PM

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •