Home Page link  

A Bit Late Sending Estimated Tax

  
Groups | Search | About
User Password
Register Now! Lost Password?

Taxes General Forum - Tax professionals meeting place and answers to queries. (Moderated)

 Post an article  get this group's latest topics as an RSS feed add this group's latest topics to your My MSN content add this group's latest topics to your My Yahoo content  add this group's latest topics to your Google content  YahooMyWeb Yahoo!  Google Google  Windows Live Favorites Windows Live  del.icio.us del.icio.us  digg digg  Add to Netscape Netscape
Subject Author Date
A Bit Late Sending Estimated Tax Mark 212 05-08-2007
Posted by Mark 212 on May 8, 2007, 12:52 am
Please log in for more thread options
 I wasn't sure my wife and I even needed estimated tax tax
installments for 2007 because the income without withholding
that my wife earns is sort of hit or miss as a consultant.
However she has been working pretty steadily 3 days a week;
I think to be safe I should send a quarterly payment. Is the
April date when the tax is due hard and fast? Is there a
penalty for sending it in May?

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Phil Marti on May 9, 2007, 3:54 pm
Please log in for more thread options
> I think to be safe I should send a quarterly payment. Is the
> April date when the tax is due hard and fast? Is there a
> penalty for sending it in May?

In your case the penalty would be calculated as interest
from 4/15/2007 to the earlier of 4/15/2008 or the date paid.
So yes, go ahead and send it in.

An alternative, if you're subject to withholding, is to have
some extra withheld from your pay. Since withholding is
applied equally over the year when considering estimated tax
requirements, that would eliminate the need to make
estimated tax payments and avoid any penalty.

Details are in IRS Publication 505.

--
Phil Marti
Clarksburg, MD

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Mark 212 on May 10, 2007, 11:34 pm
Please log in for more thread options

>> I think to be safe I should send a quarterly payment. Is the
>> April date when the tax is due hard and fast? Is there a
>> penalty for sending it in May?

> In your case the penalty would be calculated as interest
> from 4/15/2007 to the earlier of 4/15/2008 or the date paid.
> So yes, go ahead and send it in.
>
> An alternative, if you're subject to withholding, is to have
> some extra withheld from your pay. Since withholding is
> applied equally over the year when considering estimated tax
> requirements, that would eliminate the need to make
> estimated tax payments and avoid any penalty.
>
> Details are in IRS Publication 505.

My wife does consulting work for the Md State Dept of Educ.
They don't take withholding. She's an independent
contractor. I do some substitute teaching and to compensate
a little I take no exemptions and even increased my
withholding. I even increased my withholding on our MD
State Teacher's Pension so that's why I wasn't sure if
enough withholding was going to cover the $ she makes from
the MSDE. They only call her in at various times.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Herb Smith on May 9, 2007, 3:54 pm
Please log in for more thread options

> I wasn't sure my wife and I even needed estimated tax tax
> installments for 2007 because the income without withholding
> that my wife earns is sort of hit or miss as a consultant.
> However she has been working pretty steadily 3 days a week;
> I think to be safe I should send a quarterly payment. Is the
> April date when the tax is due hard and fast? Is there a
> penalty for sending it in May?

Is there some reason why she can't have withholding taken
out of her payroll check? That would be easier than fretting
about estimated tax payments.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by bono9763@yahoo.com on May 9, 2007, 3:54 pm
Please log in for more thread options

> I wasn't sure my wife and I even needed estimated tax tax
> installments for 2007 because the income without withholding
> that my wife earns is sort of hit or miss as a consultant.
> However she has been working pretty steadily 3 days a week;
> I think to be safe I should send a quarterly payment. Is the
> April date when the tax is due hard and fast? Is there a
> penalty for sending it in May?

You can send in your payment in May. Whether you will be
penalized or not depends on how much tax liability you have
when you file next year, how much withholding you had on any
W2 income and when her Schedule C income was earned. You can
read all about it on Form 2210 and the instructions for it,
including the method to calculate annualized income.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Similar ThreadsPosted
Started self-employment late in year...estimated tax? January 9, 2008, 5:23 pm
Any harm to paying Estimated Taxes a little late? April 4, 2008, 7:44 am
Late S election November 14, 2006, 8:28 pm
another late filing of TD F 90-22.1 February 2, 2007, 7:17 pm
Late filing? ? ? April 3, 2007, 2:07 am
Late W-2s and 1099s January 31, 2008, 10:51 pm
Late to setup Payroll. What now? January 16, 2007, 7:21 pm
Very late on 941's, how do I file W-2's with BSO? April 12, 2007, 12:44 am
Rebate and Late Tax Payment July 14, 2008, 5:23 pm
Relief for late S-Corp election November 2, 2006, 12:52 am

Contact Us | Privacy Policy
This site is not affiliated with Intuit - makers of Quickbooks and Quicken software
This site is not affiliated with Sage Software - makers of Peachtree accounting software
XML SitemapXML Sitemap