It is true that estimated tax payments are generally required for businesses and individuals who have income that is not subject to withholding. It is also true that if you do not pay enough tax throughout the year either through withholding or estimated tax payments you may be subject to an underpayment penalty. The following points provide more information about estimated tax payments and underpayment penalties:
It is important to note that the IRS may waive the underpayment penalty if you can show that the underpayment was due to reasonable cause and not willful neglect.
They can perform the equivalent function by making what are called "estimated tax payments" four times a year. They need to do this in order to avoid penalties for underpayment. Federal estimated tax payments are made with Form 1040-ES which you can look at here: http://www.irs.gov/pub/irs-pdf/f1040es.pdf Most states that have an income tax have a similar form for estimated state income tax payments.
You do NOT get any deductions on your 1040 income tax return for the payments that you make on your past due federal income taxes, penalties, or interest.
In 2009, you will pay the regular state and federal tax rates on all of your income, including your self-employment income. In addition, you will pay a Social Security tax of 12.4% on the first $106,800 of your net self-employment earnings (reduced by other earnings subject to SS) and a Medicare tax of 2.9% of your net self-employment earnings with no limit. You should also investigate whether you need to make quarterly estimated tax payments to avoid possible penalties for underpayment.
Almost all income taxes are...thats what withholding is...and if you don't have that you must make estimated payments through the year. You take the credit for what is paid on your return, and that is why many get refunds. Underpaying, or not paying, incurs substantial penalties and interest.
where can I get 2011 1040ES estimated tax forms so I can send payments
They can perform the equivalent function by making what are called "estimated tax payments" four times a year. They need to do this in order to avoid penalties for underpayment. Federal estimated tax payments are made with Form 1040-ES which you can look at here: http://www.irs.gov/pub/irs-pdf/f1040es.pdf Most states that have an income tax have a similar form for estimated state income tax payments.
I suspect you mean if one of you didn't have withholding? It is an option to file jointly or seperately. Any estimated payments, whether done quarterly by the self employed /not employer withheld party, or by the others withholding...any made by either, is applicable to the joint return. Any penalties and interest for underpayment of estimated tax is applicable the same way.
You do NOT get any deductions on your 1040 income tax return for the payments that you make on your past due federal income taxes, penalties, or interest.
In 2009, you will pay the regular state and federal tax rates on all of your income, including your self-employment income. In addition, you will pay a Social Security tax of 12.4% on the first $106,800 of your net self-employment earnings (reduced by other earnings subject to SS) and a Medicare tax of 2.9% of your net self-employment earnings with no limit. You should also investigate whether you need to make quarterly estimated tax payments to avoid possible penalties for underpayment.
OASDI is not taken out. Income tax is taken out on request only. Contact the Social Security Administration if you want tax to be withheld. Whether or not you ask for tax to be withheld, you may be liable for tax on your SS payments. That is computed when you fill out your Form 1040 at the end of the year. If you do not have sufficient tax withheld or make estimated payments, you may be subject to a penalty for underpayment of estimated taxes if you owe any taxes.
Yes, retirement pensions are typically subject to Federal Income tax withholding unless they are from non-taxable sources such as Roth IRAs. The amount of tax withheld depends on the individual's withholding elections and tax bracket.
Almost all income taxes are...thats what withholding is...and if you don't have that you must make estimated payments through the year. You take the credit for what is paid on your return, and that is why many get refunds. Underpaying, or not paying, incurs substantial penalties and interest.
you suck
where can I get 2011 1040ES estimated tax forms so I can send payments
TurboTax Estimated Taxes is an online estimated income tax payment calculating and filing service. For taxpayers who file quarterly estimated payments, it provides payment calculators and allows e-filing of estimated tax payments. Automatic deadline reminders help users avoid late payments. The record of past payments can be automatically imported into TurboTax at tax-filing time, which saves the trouble of typing that history in manually.
PYT on bank statements stands for pre-authorized payments. This means that there is an authorized payment being drafted from an account.
It would depend on your level of withholding and whether or not you are taking taxable distributions from your annuities. If you have other income that is not subject to withholding, that would likely require you to pay quarterly estimated taxes. On time and adequate quarterly payments will help you avoid any tax penalties for late payment.