Should I just send a check to IRS and state tax board every 3 months? If so, does the check need to be accurate?
2007-05-12 22:34:25 · 7 answers · asked by Stanyan 3 in Business & Finance ➔ Taxes ➔ United States
You'd pay a tax estimate using form 1040ES each quarter. Besides federal income tax you will be paying self-employment tax (social security) ,, that will be 15.3% of your income. The attached link is for Form 1040ES and it has worksheet to figure your income tax amount, the form you send in is towards bottom of page. After you send in a tax estimate to IRS they will send you official 1040ES forms.
Depending on your income, your state may also require you to pay estimates.
2007-05-13 02:24:07 · answer #1 · answered by Jo Blo 6 · 0⤊ 1⤋
If the 1099 income is your only income, you should be paying estimated taxes every quarter (state and federal), then filing a Schedule C and Schedule SE with your tax return at the end of the year. It should be as accurate as possible to avoid underpayment penalties. How much you should pay each quarter is usually based on the previous year's income. If you're not sure, consult a tax professional.
2007-05-13 11:59:54 · answer #2 · answered by crazydave 7 · 0⤊ 0⤋
Actually, you must submit quarterly or you may be subject to penalties at the end of the year (when filing). You should send in the estimate of net income (i.e., taxable income). In other words, it sounds as if you are "self-employed," therefore, any business related expenses are subtracted from your income to arrive at your net taxable. Remember to keep all invoices, receipts, mileage log, etc. because the IRS will eventually check your records.
Related info below....
2007-05-13 07:26:05 · answer #3 · answered by Country Boy 5 · 0⤊ 0⤋
Yes you would make Quarterly payments every three months, using Form 1040 Es to be properly credited with the payments
http://www.irs.gov/pub/irs-pdf/f1040es.pdf
2007-05-13 06:34:44 · answer #4 · answered by Rob 7 · 3⤊ 0⤋
Yes you should make quarterly payments. They don't have to be exact, just fairly close so at the end of the year you come out approximately even.
2007-05-13 10:32:41 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
Personally I would find the average tax per month and put it into a savings account and not touch it. That way when you pay once a year the money will be put back and have earned you intrest instead of just sitting in the governments hands.
2007-05-13 05:42:55 · answer #6 · answered by mousehth72 5 · 0⤊ 6⤋
this is peanuts you are not to be taxed if this is salary....thoritically you cannot survive at that income
2007-05-13 08:12:19 · answer #7 · answered by frnds_4real 1 · 0⤊ 6⤋