If I receive a taxable insurance payment this month, what is the deadline for paying the taxes due on it?

Answer 1

The deadline for tax balance due is April 15 of the following year.

However!!!

http://www.irs.gov/app/understandingTaxes/jsp/whys/lp/IWT6L2lp.jsp

U.S. citizens and residents generally have to pay tax on their earned income based on ability to pay. Federal income tax is collected on a "pay-as-you-go," or "pay-as-you-earn" basis.

And the "pay-as-you-go" is the withholding. This means you must pay the tax as you earn or receive income during the year.

http://www.irs.gov/businesses/small/article/0,,id=110413,00.html

Estimated tax is the method used to pay tax on income that is not subject to withholding. This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes and awards. You also may have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough.

Estimated tax is used to pay both income tax and self-employment tax, as well as other taxes and amounts reported on your tax return. If you do not pay enough through withholding or estimated tax payments, you may be charged a penalty. If you do not pay enough by the due date of each payment period you may be charged a penalty even if you are due a refund when you file your tax return.

Who Must Pay Estimated Tax

If you had a tax liability for 2006, you may have to pay estimated tax for 2007.

General Rule
You must pay estimated tax for 2007 if both of the following apply.

1.
You expect to owe at least $1000 in tax for 2007 after subtracting your withholding and credits.
2.
You expect your withholding and credits to be less than the smaller of;
*
90% of the tax to be shown on your 2007 tax return, or
*
100% of the tax shown on your 2006 tax return. Your 2006 tax return must cover all 12 months.

How To Figure Estimated Tax

To figure your estimated tax, you must figure your expected adjusted gross income, taxable income, taxes, deductions, and credits for the year.

When figuring your 2007 estimated tax, it may be helpful to use your income, deductions, and credits for 2006 as a starting point. Use your 2006 federal tax return as a guide. You can use Form 1040-ES to figure your estimated tax.

You must make adjustments both for changes in your own situation and for recent changes in the tax law.

When To Pay Estimated Taxes

For Estimated tax purposes, the year is divided into four payment periods. Each period has a specific payment due date. If you do not pay enough tax by the due date of each of the payment periods, you may be charged a penalty even if you are due a refund when you file your income tax return.

For the period: Due date:
Jan. 1 - March 31 April 15
April 1 - May 31 June 15
June 1 - August 31 September 15
Sept. 1 - Dec. 31 January 15 next year

So. You need to figure out the estimated tax.

Here is one from our company:

http://www.hrblock.com/taxes/tax_calculators/index.html

Answer 2

If this is consulting from somebody different than your interest, assume which you've the skill to owe 30% of it in tax. next January you will get a kind 1099-Misc with the money listed in container 7. you may placed this on a time table C, subtract expenses and the internet volume is taxed as basic earnings (i'm guessing 15% tax bracket) and self-employment tax (15.3%, however that's definitely nearer to fourteen$). in case you wait to pay the extra tax once you document your tax return you *would* be ok in case you could definitely write the full verify via 4/15. right this is the topic. i do no longer understand what your 2008 withholding on your W-2 look slike. Is it *at* least what you owed in earnings tax for 2007? If confident, and you made below $one hundred fifty,000, you do no longer could do expected tax money as you have met a "secure harbor." the different secure harbors are owing below $1000 or owing below 10% of your 2008 tax invoice...in case you pass over all 3 secure harbors, the underage is taxed with an 8% weighted favourite penalty (so that's nearer to 4% of the finished). My monetary business enterprise account pays 3% no longer 8%, so in case you have been me, i could calculate the tax invoice, the secure harbors and bump up the withholding on the W-4 via adequate to hit a secure harbor.....(in case you think of you will owe $3000 and there are 10 extra pay sessions, in simple terms have them withhold $3 hundred extra in line with pay era.)

Answer 3

This is really going to depend on your other income. If you are working full time and having taxes taken out of your check and the insurance payment isn't too large then you could just wait until you do your taxes at the end of the year. However to avoid the possibility of any tax penalties you can send in an estimate on Sep. 15th.