Quarterly Taxes Due Friday, June 15th

Written by nickel - 4 Comments

Just a quick reminder that quarterly estimated tax payments are due this Friday, June 15th. If you have income that’s not subject to withholding (e.g., self-employment, interest, dividends, gains from the sale of assets, rental income, etc.) then you might need to make quarterly payments to avoid an underpayment penalty.

You can either use IRS From 1040-ES or the Electronic Federal Tax Payment System. I’ve always used the former, although I should probably check out the latter. And don’t forget that you might also need to make estimated payments for your state taxes. If you’re looking for a good source of general information on estimated taxes, check out Fairmark.com’s Estimated Taxes 101.

Published on June 12th, 2007 - 4 Comments
Filed under: Self Employment, Taxes
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Comments (scroll down to add your own):

Your post (and your post alone) made me realize that I need to re-evaluate my taxes in light of some changes at work, and do the estimated-tax thing. I wouldn’t have thought to do so otherwise. Thanks!
Comment by Adam — Jun 13th 2007 @ 12:41 am
Nickel,

do you know if you have to file quarterlys if you don’t show a profit for the quarter? I just started a new business venture in Q2 and it hasn’t turned a profit yet…. hopefully next quarter!
Comment by Joe — Jun 15th 2007 @ 9:25 am
The only way to know for sure is to work through the 1040-ES worksheet. It’s based on projected income, and I always project forward based on YTD earnings. I’m assuming that if you have a regular job, your withholding is sufficient to cover the taxes due without incurring a penalty. Thus, if you haven’t really had any other income (yet), you probably won’t need to file quarterly (yet). There are definitely cases in which someone’s income goes up mid-year, and they have to start filing for, say, the 3rd and 4th quarter even though they didn’t pay in for the 1st and 2nd quarter.

Comment by nickel — Jun 15th 2007 @ 9:55 am
Thanks for the insight nickel! I appreciate it. My revenue in my side business compared to my ‘real job’ is not significant enough yet to make a dent in my withholding, so I’m safe till next quarter….
Comment by Joe — Jun 18th 2007 @ 12:05 am