[65gto69]

Originally Posted by steve

naw. wont send you to jail. then you couldnt work to pay more taxes and fines. just keep up with the estimated payments and they will leave you alone. after the first year you will be on the radar and they will send you payment stubs....

What if your income is so erratic and small that you don't even know how to estimate it?

Mark

[steve]

Originally Posted by 65gto69

What if your income is so erratic and small that you don't even know how to estimate it?

Mark

you have to pay the same amount or more than you did the previous year to avoid fines. i agree this sucks when your yearly earnings can vary greatly. i have had to pay the fines before. sometimes it is more economically feasible to pay less because you know the quarter will be slow and incur the fine. i dont think ive ever had to pay more than 250.00 in fines.

so for example if in 2008 you paid 20,000.00 in taxes you are expected to send 5,000.00 a quarter in 2009. if you send less and end up making the same wages you will be fined. if you send the same amount as the previous year and make MORE in wages you will not incur a fine but still owe in april. if you make less than the previous year you will receive a refund in april. the way the gov. looks at it its their money the second you make it and its already late. kinds sucks but better money than being staff !!!!

[quicksilver97ta]

Originally Posted by 65gto69

What if your income is so erratic and small that you don't even know how to estimate it?

Mark

I never estimated, I just paid quarterly. That was the deal a few years ago, basically instead of doing taxes annually you do them quarterly. I doubt thats changed. Estimated was for paying in advance which is at will, and was never mine.

[steve]

Originally Posted by quicksilver97ta

Estimated was for paying in advance which is at will, and was never mine.

not true

[steve]

http://www.irs.gov/businesses/small/...110413,00.html

[quicksilver97ta]

Originally Posted by steve

http://www.irs.gov/businesses/small/...110413,00.html

"When To Pay Estimated Taxes

For estimated tax purposes, the year is divided into four payment periods."

Ahh, so that's really what I did. Been a few years. Still the same advise though, do your taxes quarterly and pay, or else, lol.

[steve]

actually you MUST make estimated payments to be in compliance. it may take them several years to catch up to you. but they will.

if you make less than 1000.00 with any single employer you do not need a 1099 from them.

you may also want to look into the fact that if you do most of your work with a single company and work "X" amount of hours there (cant remember the amount) in the governments eyes you ARE NOT considered self employed. the company you work for is responsible for your taxes (and i think they are also supposed to extend benefits to you). you could technicaly not pay taxes under this circumstance and the gov. has to go after the employer not you......



Who Must Pay Estimated Tax

If you had a tax liability for 2008, you may have to pay estimated tax for 2009.

General Rule
You must pay estimated tax for 2009 if both of the following apply.

1.
You expect to owe at least $1,000 in tax for 2009 after subtracting your withholding and credits.
2.
You expect your withholding and credits to be less than the smaller of;
*
90% of the tax to be shown on your 2009 tax return, or
*
100% of the tax shown on your 2008 tax return. Your 2008 tax return must cover all 12 months.




Estimated tax not required
You do not have to pay estimated tax for 2009 if you meet all three of the following conditions.

*
You have no tax liability for 2008
*
You were a US citizen or resident for the whole year
*
Your 2008 tax year covered a 12 month period