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??
2006-12-30 06:47:23 · 10 answers · asked by MizRose 1 in Business & Finance ➔ Taxes ➔ United States
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.
2006-12-30 07:35:41 · answer #1 · answered by jseah114 6 · 3⤊ 0⤋
discern 30%, $450 1 / 4, and you is often ok. If he makes over around 80K discern 40% of what you're making. that's for federal. If there's a state or interior reach earnings tax the place you reside, you will could desire to pay them too, yet no thank you to assert what % devoid of understanding the place you reside. And if he has adequate overwithholding to conceal this, it truly is not actual which you would be able to desire to record quarterly predicted returns in case you record a joint return. the difficulty is provided in in simple terms if once you record you owe over $one thousand - the IRS would not care no be counted if the money is provided in by way of estimates or by way of withholding.
2016-10-28 18:06:23 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If you don't pay estimated taxes, you may have to pay a penalty and interest when you file. Generally, you don't have to pay penalty and interest unless you owe moew than $1000 when you file. The irs wants you to pay your taxes as you make your money. Check out this link http://www.irs.gov/taxtopics/tc306.html A special note to HANS B, you must either pay taxes or pay the consequences of failure to pay. My nephew tried not doing that for a while and would have gone to prison if his family hadn't helped him out. Why in the world would you believe a Hollywood director on the subject of taxes?
2006-12-30 07:25:05 · answer #3 · answered by curious george 5 · 1⤊ 0⤋
I think it is part of the income tax laws but if you only have a small income and therefore very low taxes, they might overlook it. Remember, you have to pay tax on the interest earned by the money you are holding for income tax.
2006-12-30 06:52:47 · answer #4 · answered by St N 7 · 0⤊ 0⤋
Corporations must pay estimated taxes each quarter if the tax liability is at least $500, or $1,000 for individuals. If you do not make estimated payments, you can be assessed underpayment penalties.
2006-12-30 07:22:26 · answer #5 · answered by texascajun82 2 · 1⤊ 0⤋
You won't get in trouble if you wait, but you'll probably pay interest and maybe a penalty for late payment of estimated amount.
2006-12-30 08:36:28 · answer #6 · answered by Judy 7 · 0⤊ 0⤋
You sound like you don't need any help. But then again you asked me a question, which puts that theory in question...
2006-12-30 06:59:55 · answer #7 · answered by Rick 3 · 0⤊ 0⤋
Bamma say yep you sposed to. Bamma say nice tax lady tell him no biggie. Bamma say make more investing money then pay small penalty. Bamma say okie dokie Miss Block. Bamma say here a payment there a payment. Bamma say you on right track. Bamma find it strange he pay April then two month later June. Bamma say how he sposed to get ahead. Bamma say Uncle Scam. Bamma otta know.
2006-12-30 06:57:48 · answer #8 · answered by Anonymous · 1⤊ 5⤋
There is no law that states you need to pay ANY income tax. Look it up, or watch this documentary movie made by renowned hollywood director on google video
''america, freedom to fascism''
its a great film done by a great and true American
2006-12-30 06:56:02 · answer #9 · answered by Hans B 5 · 0⤊ 7⤋
Yes, if you are self-employed.
2006-12-30 07:15:19 · answer #10 · answered by PALADIN 4 · 0⤊ 1⤋