Questions tagged [estimated-taxes]

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5 votes
2 answers
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Will I be penalized for not making an estimated payment in the first quarter for a side gig that started in the second quarter?

I picked up a side-gig on March 30th, that pays me at the end of each month, so my first pay check will be towards the end of April, which is in the second quarter. It seems I have two options to ...
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2 votes
2 answers
386 views

Can I pay a previous quarter's estimated taxes with current quarter?

I've never done estimated taxes before and I found out today is the last day for the June 1 - August 31 period to pay estimated taxes. I went to the IRS site and saw how I can do it but there is ...
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1 vote
1 answer
105 views

Significant Capital Gain -- how to pay quarterly estimate taxes correctly?

My understanding is if you are expecting to owe more than 2k in taxes you are supposed to pay quarterly estimate taxes. If you don't you might pay a penalty interest rate on the taxes owed to the IRS (...
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  • 145
1 vote
1 answer
63 views

1040-ES Line: 15. What to put here if I started self-employment in Q2?

I've recently started work as an independent contractor starting in April and I'm trying to calculate my estimated quarterly taxes for Q2. Line 15 on 1040-ES says: "If the first payment you are ...
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  • 113
3 votes
1 answer
69 views

Filing jointly, can I pay estimated taxes on behalf of my wife's side work?

Quick background: I have an EFTPS account where I've paid estimated taxes in the past for some side work in programming. I haven't used it in years. My wife recently started a free lance writing gig ...
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  • 193
1 vote
1 answer
108 views

How do USA Estimated Tax Payments Work?

I repositioned my investments and sold a large quantity of stock in the first quarter of this year. As such, for the first time in a long time, I will need to pay estimated taxes. However, I am not ...
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  • 265
2 votes
1 answer
317 views

My 2021 withholding has already paid 100% of my 2020 tax liability. Can I skip paying estimated taxes on self-employment income for the rest of 2021?

My unique situation is as follows: My 2020 AGI was around $20k. My 2020 total tax (Form 1040 line 24) was only $700. My 2021 income will be much higher. I had a W-2 job from January through April of ...
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4 votes
2 answers
105 views

Can I pay equal amounts of quarterly tax if my income is uneven?

My money manager typically reallocates my portfolio early in the year. That means the majority of my capital gains occur in Q1. Am I required to adjust for this in my quarterly taxes, trying to pay ...
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  • 143
5 votes
0 answers
84 views

For 2021, What is the most Tax-Advantageous Way to Make a Charitable Donation that is Larger than my AGI?

I may be making a charitable donation this year (2021) to my school; it will be about 1.5 times my AGI. What is the most tax-advantageous way to make this donation? If I make the donation in stock ...
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  • 1,838
3 votes
1 answer
170 views

Deciding if you need to make estimated tax payments

I am helping a friend with her taxes. The following is a quote from the instructions for form 1040ES: In most cases, you must pay estimated tax for 2021 if both of the following apply. You expect to ...
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  • 883
4 votes
1 answer
75 views

I missed the last estimated tax for 2020, where to pay then?

I just realized that I missed the last estimated tax for the 2020 year. There is no 2020 option on the "Tax Period for Payment" field on the IRS "Direct Pay" site. What I can do? ...
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  • 173
2 votes
0 answers
49 views

Made large capital gains on Dec 31, 2020. Should I send a check to the IRS right-away earlier than sending my return for 2020? [duplicate]

In the US, I made large capital gains on the last few days of 2020. It was not so much anticipated, so I didn't send the IRS any estimated taxes for these gains. I am afraid of possible penalties for ...
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11 votes
4 answers
2k views

One-time estimated tax payment for windfall

I recently sold an investment that has generated a capital gain that is a substantial fraction of my 2020 income. My brokerage did not withhold tax (I think that is normal), but I am now materially ...
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3 votes
3 answers
169 views

Can you pay "taxes as you go" in the US?

If you have a steady income you pay taxes continuously based on the assumption of the final income per year. However if your income is very spikey you may have no idea how much you will be making in a ...
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2 votes
2 answers
84 views

How to pay tax on IRA to Roth rollover

I recently changed employers, and merged my old retirement account with a Roth account I have with an independent company. A little less than half the contributions were pre-tax, and I understand I ...
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  • 151
0 votes
1 answer
35 views

I made a payment for Form 1040-ES via IRS.gov/payments. Do I have to fill any form in addition to that?

I made a payment for Form 1040-ES via https://www.irs.gov/payments. Do I have to fill any form in addition to that?
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0 votes
1 answer
76 views

When paying the 1st and 2nd quarters of estimated tax payments (Form 1040-ES) due on July 15, 2020, should I make 1 or 2 payments on irs.gov/payments?

I read on https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes: First and second quarter estimated tax payments normally due April 15 and June 15 are postponed to July 15, ...
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1 vote
1 answer
48 views

Do I need to pay Estimated Taxes on Qualified dividend income if I fall in the 0% Long-Term Capital Gains tax bracket?

Basically I make ~$21000 in income from work, and $1000 in dividends. So, being below $40k in income, I technically owe 0% on the qualified dividend income, but I'm not sure if I pay the IRS and get a ...
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2 votes
2 answers
155 views

Tax safe harbor rule with estimated payments (no tax liability on prior year)

I am a Spaniard and immigrated to the US on January of this year. I worked in the US in 2015 & 2016 and filed taxes for those years, but I was not in the US during 2018 so I had no tax liability ...
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  • 209
1 vote
1 answer
98 views

Self employed half the year unemployed the rest. Do I pay quarterly taxes?

I was unemployed from January-June and started becoming self-employed from June-December. Do I need to pay quarterly taxes? I will owe more than $1,000 in taxes for being self-employed half this ...
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3 votes
1 answer
744 views

Can I make multiple estimated tax payments to the IRS in a single quarter?

I know I'm required to make at least one payment every quarter before a certain date, but can I make multiple, smaller payments? Will it cause me any trouble if I do? The most I could find was: ...
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  • 131
1 vote
1 answer
37 views

HMRC Tax Returns for following year

If my startup business is running at a loss after adding costs of supplies and money come in, how would this affect income tax in the following year? As any gains in the following year would need to ...
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0 votes
2 answers
70 views

Amend previous return to move estimated payment?

In a complicated situation for 2017 taxes (settled in 2018) (Estimated State payment too big --> money back; + 2018 Tax Reform), it seems like I'd be better off had I made a State Tax estimated ...
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8 votes
3 answers
1k views

Estimated State payment too big --> money back; + 2018 Tax Reform

In Apr 2018, for 2017 taxes, I filed for extension and made a payment for estimated tax for the State & local taxes of NY of 20K. I was completely wrong, and ended up getting a State refund of 30K ...
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3 votes
2 answers
102 views

US Estimated Taxes-- what can I do if I had a very weak Q1, but expect a strong Q2-Q4?

I'm self employed and when I have the contractor hours, I make good money, I'm faithful to set more money aside than I need for my taxes and I even set additional money in case I hit a "dry spell". ...
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  • 835
1 vote
1 answer
470 views

CA Safe Harbor Estimated Taxes

Assuming no income taxes are withheld, does paying 30%, 40%, 0%, and 30% (33, 44, 0, and 33 for high earners) of previous year taxes by each respective estimated tax due date meet safe harbor ...
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  • 1,199
0 votes
1 answer
1k views

Would it be a good idea to start my LLC while I owe the IRS?

I’m a self-employed cosmetologist I filed taxes last year and had to pay back $2500 I’m on a payment plan right now and they told me once I file again it will void the payment plan. So, would starting ...
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2 votes
2 answers
223 views

Do I have to pay estimated taxes?

I had a financial windfall in 2018, pre-paid taxes to account for this, and ended up getting a refund. Turbotax included several 1040-ES forms for paying estimated taxes for 2019, I assume based on my ...
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5 votes
0 answers
1k views

Can I make estimated tax payments instead of withholding from my paycheck? [duplicate]

My employment provides me with a W-2 at the end of the year, and I currently have taxes withheld from my paychecks. In the opposite of this question, Pay estimated tax using W-4 withholding instead of ...
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  • 385
2 votes
1 answer
104 views

1040-ES Late Payment

quick question: I'm new to paying estimated taxes and I somehow forgot to file my last estimated taxes by Jan 15th this year - the payment due was for Sept-Dec 2018. I just realized this, and I want ...
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1 vote
0 answers
42 views

Estimated Tax Penalty

Instructions for Form 1040 state: Because Form 2210 is complicated, you can leave line 23 blank and the IRS will figure the penalty and send you a bill. We won't charge you interest on the ...
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0 votes
1 answer
61 views

Late estimated quarterly payment because state failed to act on ACH authorization

In October I submitted payment for Q3 taxes to PA and received a confirmation number for my payment. But they failed to act on that authorization until January, when they must have noticed it at the ...
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  • 101
0 votes
3 answers
97 views

Going from a 1099 to W-2 job, must I pay estimated taxes?

In 2018 my spouse worked full-time on W-2, and I worked entirely on 1099. She had taxes withheld, but circumstances prevented me from paying any estimated taxes, so we'll certainly have a substantial ...
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3 votes
1 answer
274 views

If my withholding will pay my and my spouse's tax bill, does she still need to pay estimated taxes as an independent contractor?

I am a full-time employee. My spouse is effectively employed long-term with one company, but has always been paid as an independent contractor. If I plan on filing my 2018 taxes jointly with my ...
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  • 210
1 vote
1 answer
86 views

Estimated tax payments required when paid only once per year?

I did a small amount of work as an asset manager by power of attorney this year for which I am getting a fee paid once at the end of this year (in December) and I probably will do no further work of ...
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  • 9,306
0 votes
2 answers
76 views

Help calculating quarterly estimates for September

I was looking to get some help with my federal quarterly estimates this September. My W2 income is 36k/year My 1099 income (started 2 months ago) is around $1000/month How do I calculate my ...
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  • 209
1 vote
0 answers
124 views

S-Corp - How to Split Up Quarterly Estimated Tax Payments

I have a S Corp where I am the only shareholder and employee. I usually do payroll once per year - at the end of the year - during which I pay myself a salary for the whole year (pay period of Jan. ...
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3 votes
1 answer
110 views

Excess estimated taxes

Context: US Federal Personal (non-business) income taxes Other than giving the government an interest free loan for some number of months, are there any penalties or downsides for "playing it safe" ...
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  • 1,199
5 votes
2 answers
368 views

Is there a penalty to withholding more taxes at the end of the year?

Suppose that Bob realizes in November that he has severely underwithheld taxes and would have a large penalty due when he files. Since he works at a salary-paying job, he elects to increase his ...
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  • 53
1 vote
1 answer
119 views

Estimated taxes itemized deduction?

Seeking a second opinion on what my tax preparer provided me in my 2017 taxes. I made an estimated tax payment of $20,000 to the State of California in Dec 2017 (for a stock sale I made in Nov 2017). ...
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  • 21
1 vote
2 answers
87 views

How does the timing of estimated tax payments relate to the state and local tax refund worksheet?

The instructions for the Form 1040 State and Local Income Tax Refund Worksheet (Line 10) say that the worksheet cannot be used if (among many other things) the last payment of estimated state or local ...
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8 votes
2 answers
809 views

US, estimated taxes - but for first filing?

Just curious - in the US - say it's the first time you are filing taxes. (I suppose the only two possibilities are either (A) you happened to move from overseas or (B) imagine a highly successful ...
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  • 13.5k
0 votes
2 answers
202 views

Is there any disadvantage to calculating my 4th quarter estimated tax so that I have no annual tax payment or refund?

I use TurboTax Home & Business to do my taxes every year. Since the 2017 edition is out and since I won't be receiving any more income this year, I've used it to figure out what my 2017 federal ...
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  • 111
19 votes
4 answers
6k views

Why pay estimated taxes?

It looks like the tax investment penalty is about 2.6%, which makes me wonder why anyone pays quarterly estimated taxes. Wouldn't you be better off putting that money into stocks and using the ...
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  • 2,802
1 vote
1 answer
104 views

Do I need to pay myself a salary if I switch from S-Corp employee to shareholder mid-year?

The company in question is an S-Corp. From 1/1 through 7/31, I worked as a W-2 employee for the company. During that time, the company was owned by a single person, who held 100% of the shares. I ...
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  • 356
2 votes
2 answers
594 views

Pay estimated tax using W-4 withholding instead of quarterly payments

I currently have a regular job at my university that provides about 2/3 of my annual income. I also do contract work on the side, and have some minor investment dividends and interest payments as ...
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2 votes
1 answer
616 views

Calculating separate estimated taxes for self-employed spouse

I earn wages and my employer withholds taxes from my paycheck in the usual way. My wife is newly self-employed, and we are calculating her estimated taxes for her self-employment income for this year. ...
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  • 123
0 votes
3 answers
609 views

Withholding for unexpected Short-Term Capital Gains and Penalties

Every year, when paying my taxes, I typically get a small amount back from the Feds, and usually pay "less than $400" to my state. However, within this 2016 year, I unexpectedly made a large amount ...
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  • 209
4 votes
1 answer
162 views

Am I allowed to make estimated tax payment after deadline

About Jan 10, 2017 I received a surprise large disbursement/payment from a trust via check dated Dec 31, 2016. I assume the Schedule K-1 that I will eventually receive for tax year 2016 tax year will ...
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  • 203
1 vote
2 answers
265 views

For United States estimated taxes, can my 2nd and 4th quarter payments reflect the actual length of those quarters?

I'm trying to plan out how I'm going to handle my US estimated taxes for 2017. I'm self employed and the amount of money I make each month varies quite a bit and is generally unpredictable, so it's ...
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  • 111