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Because most people simply don't have the controll or ability to estimate and put aside any money to pay the debt/tax at any other time. They would spend it on other things. Also, the money itself is needed through the year to pay for the services and things tax provides....otherwise the Govt would have to borrow funds, pay interest and taxes would be higher.
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∙ 15y ago
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How often do people pay their taxes?
Estimated taxes are paid quarterly.
Do you pay taxes upon withdrawal from 401K or do you pay at income tax time?
Like all taxes, you pay estimated payments before (in this case withholding like on your pay) and at "income tax time" you determine what you ultimately owe. If more estimated were made than need, it is refunded, if less, you pay more. (Plus penalty and interest). Estimated payments are mandatory.
If your self employment income is less than expected do you pay less estimated taxes?
Yes
Would it be a good idea to have no money withheld for taxes and pay them?
no If you underpay your estimated taxes (whether it is done by payroll withholding or by the requirement to file the quarterly if you are self employed), you will have to pay a (frequently substantial, especially if you under pay by a large percent) penalty and interest on the underpayment. Automatically assessed.
Does the estate pay taxes?
Estates pay taxes on income and may have to pay inheritance taxes.
How often do people pay their taxes?
Estimated taxes are paid quarterly.
Do you pay taxes upon withdrawal from 401K or do you pay at income tax time?
Like all taxes, you pay estimated payments before (in this case withholding like on your pay) and at "income tax time" you determine what you ultimately owe. If more estimated were made than need, it is refunded, if less, you pay more. (Plus penalty and interest). Estimated payments are mandatory.
Is it better to pay as much as you can of last year's taxes or the full amount of your first quarter's estimated taxes and less toward last year's taxes?
Last year's taxes are incurring a penalty of 0.5% per month plus interest of 4% per year.This year's unpaid estimated taxes will incur a penalty of 4% per year until April 15 of next year (or until paid).So. you are paying much more in taxes and penalties on last year's taxes than you would pay on an underpayment of this year's estimated taxes. Pay off last year's taxes first.
If your self employment income is less than expected do you pay less estimated taxes?
Yes
Would it be a good idea to have no money withheld for taxes and pay them?
no If you underpay your estimated taxes (whether it is done by payroll withholding or by the requirement to file the quarterly if you are self employed), you will have to pay a (frequently substantial, especially if you under pay by a large percent) penalty and interest on the underpayment. Automatically assessed.
Does the estate pay taxes?
Estates pay taxes on income and may have to pay inheritance taxes.
Do state police pay taxes?
Yes, they pay taxes. If you work you pay taxes no exceptions.
Where can one find more information on withholding tax?
If you are an employee anywhere, your taxes are withheld from your paycheck. If you do not have any taxes withheld, check the official Internal Revenue Service website on how to pay an estimated tax.
Can you pay a lump sum on your estimated taxes instead of over 4 quarters?
If you are looking to pay once, why not pay what you owe when you file? The benefit of pay quarterly is to manage cash flow so you don't owe a large sum at once.
What is his gross pay?
the pay before taxes net pay is after taxes
How did Sioux pay taxes?
They didn’t pay taxes.
Do police officers have to pay taxes?
Yes. They pay income taxes and property taxes and sales taxes.
