quarterly taxes?

Question

If you do an independent contracting (meaning Form 1099), does the federal government and the state governments (in Washington Metro Area) sends you "request" to have you mail in the "quarterly tax"?

OR if they don't how do I start paying the quarterly tax to both federal and state govt? I've been doing independent contract for only one month.

Answer 1

They do not send you notices to pay quarterly taxes. They have no way of knowing you are earning money until you file at the end of the year. You have to compute quarterly estimates and mail them to the appropriate taxing authority, in your case Washington and the federal govt. Both the feds and Washington should have information and forms on their websites. And yes, turbo tax can help you too.

Answer 2

I've been doing the quarterly tax thing only starting this summer myself. Easiest thing to do is get TurboTax (or similar) and do it that way. You can do it on the IRS forms, but dummy that I am, I find it very complicated - TurboTax was a snap.

In essence, you'll probably spread out your earnings over a year, or 4 quarters - but the next quarterly is due, at this point, on December 15, so it will be a single payment (to each of Feds and WA) instead of four quarterlies.

NOTE: If you RECEIVED any earned monies before Sept. 1, you're overdue on that portion for tax purposes (Sept. 15 was most recent deadline, covering June-July-August). Just do the TurboTax and it will set you straight.

Answer 3

No you have to do it on your own. Do you know how to figure out it out the tax on what you earned in 2006?

Here is a quick way of doing it. Take last year federal tax (2005) and divided by 4 quarterly payment. Then make the 1st 3 payments on the date given on the form 1040ES base on that amount. On the last payment which is due in January (2007) you have to get close to 90% tax base on 2006 income. You do this by comparing the income from last year (2005) to this year (2006). If you increase you income then you increase your last 1040ES, if you decease you income from last year then you decrease your last estimated tax payment.

If you want more information go to the following IRS website:

http://www.irs.gov/businesses/

Answer 4

No, they won't send you a form unless you either filed quarterly estimated returns the previous year, or based on you annual return you should have.

You can download form 1040-ES from irs.gov website. And it's an estimate - you don't have to try to calculate it to the penny. As long as you're within 10%, you're OK. Remember to include your social security amount, which is 15.3% of your income after deductible expenses are subtracted.

This only takes care of the federal - I don't know what you have to do for D.C.

Answer 5

good quesation