I am a real estate agent and did not pay taxes on my money through the year. Am I supposed to pay tax qurtrly

Answer 1

Ouch! Yes, you should have been paying quarterly estimates (Form 1040-ES) throughout the year, assuming you have net income. On the upside, you should have some expenses to offset against the gross income you earned.

Just a few general points here: 1) you're going to get whacked with underpayment penalties and interest, so file and pay that tax as quickly as possible-long before our 4/17/07 due date. The IRS interest meter runs by the day, not the month and 2) get a good tax preparer. I frequently will recommend TurboTax to people, but in your case, TurboTax won't give you the kind of advice and tax knowledge that you'll need.

I hope it all works out for you without too much expense.

Answer 2

I did the same thing. After I got into real estate I started paying someone to do my taxes because you get so much wrong info. (One agent deducts for her acrylic nails, dry cleaning, come to find out, that is so not okay) The accountant set me up to pay quarterly so it would be easier next year. It costs about 300.00 to have someone do it, but that too is deductible and I feel better.

Answer 3

quarterly tax deposits are only due if they were determined and set up from the year before. If you have to pay this year for last years taxes those will be due at return time BUT your 1st quarters estimated taxes for 07 will be due then as well.

Answer 4

It depends on what pay plan you set up, monthly, quarterly, semi-annually. There is always possibility of a penalty, but chances are, you'll just have to come up with whatever you owe after deductions.

Answer 5

It depends on how much you made. I can't remember how much, but, if you made over certain dollar amount, you would owe interest. To avoid interest, you would need to make quarterly payment. Not a big deal though. Just pay interest when they send you a letter telling you to pay.