Do I have to file estimated tax payments for 2011?
Hi, after being unemployed for a year (June-09 to June10), I got a 1099 position in the first week of June 2010. Do I need to start making estd tax payments to the IRS every quarter (Sep 15th 2010, Dec15th 2010, Mar 2011 and so on)? OR can I just pay an annual estd tax payment for 2011 by Apr 15th 2011? Please let me know. I missed the June 15th 2010 payment. Is that ok? I had been working for only a week then and I had to focus on work rather than taxes at that point.
- troLv 710 years agoFavorite Answer
there are two coupons remaining of the 1040ES estimated payments for year 2010
Sept. 15 and Jan.15 of next year
since you just got the job, it would not have been possible to file the April or June coupons
your self employment will be approx. 15.3% of your Sch C 'net' amount filed on Sch SE
if you had no tax liability for 2009 you can safely not file for your underpayment is based on either your tax liability for the previous year or the amount of $1000
your se tax is in addition to your actual income tax and you don't mention your status so there is no way of knowing what your income tax could amount to
- Anonymous10 years ago
This is a multi-tiered issue.
You may or may not be required to make estimated tax payments. If your owe less than $1000, no problem, just write a check. If your withholding from unemployment is 100% or more of what you owed in 2009, no problem. If your withhholding from unemployment is 90% or more of what your tax bill is in 2010, no problem.
Let's say, you don't qualify under the 3 safe harbors and owe $2000. The Estimated tax penaly would be about $80. You could live.
Let's say you figure out you'll owe and start making payments 9/15 and 1/15/2011. Then you fill out and attach form 2210 (use software) to your return and show that you didn't owe until you got the contractor gig and you paid only after you owed.
- RUSeriousLv 710 years ago
If you honestly believe that you will have a tax liability when it comes time to file your 2010 tax return next year, I would heartily recommend that you make estimated payments on 9/15/10 and 1/15/11 and don't worry about the payments that were due earlier in the year. You were not working as an independent contractor for the most part prior to June 15th. The most important thing to remember is, as long as you do not owe any additional tax when it comes time to file next year, Uncle Sam will forgive you.
- StephenWeinsteinLv 710 years ago
The "quarterly payments" are not really quarterly. They are every 2-4 months, but are not evenly spaced. The payment for each year are in April, June, and September, of that year, and January of the following year.
You should, by September 15, 2010, make one large payment of the amounts that should have been made in April, June, and September 2010 (in other words, three times the amount of a regular payment) and then pay the rest by January 15, 2011.
It is definitely not ok to wait until April 2011 to start making your payments for 2010.
You may wait until April 2011 to start making your payments for 2011.
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- Anonymous10 years ago
Dear H: You never have to make ES (estimated) payments. But if you don't, you maybe hit with a penalty. To see if you are in the possible penalty situation, go to www.hrblock.com and enter all of your wages and unemployment. Under $1000 no worry, otherwise look at the safe harbor exceptions - 100% of last year 90% of this year tax due. If none of these work send in some money ASAP.
This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent.
- dezayasLv 44 years ago
go away Line sixty 3 sparkling, or enter a 0 in case you opt for. you probably did no longer make any envisioned funds. Your information on it is genuine. while a taxpayer has a refund, he has the alternative of no longer taking possession of the refund yet letting the government shop it and use it as a credit on the subsequent 365 days's tax return. this would not notice to you this 365 days.