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Posted by Nicolaus on May 26, 2008, 9:51 pm
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I'm doing some part-time contract work. I filled out a W-9 for my
client and am paid directly.
I believe it's my responsibility to send estimated tax prepayments to
the IRS every quarter. But I don't know the specifics. Which forms do
I need to fill out? What, specifically, do I need to do.
I'm fairly clueless on tax issues. I'm used to doing regular W-2
employee work, and that's idiot proof. I've googled for tips on this
(I'm sure it's a common scenario), but I can't find a clear
explanation. Thanks!
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Posted by Paul Thomas on May 26, 2008, 10:29 pm
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> I'm doing some part-time contract work. I filled out a W-9 for my
> client and am paid directly.
>
> I believe it's my responsibility to send estimated tax prepayments to
> the IRS every quarter. But I don't know the specifics. Which forms do
> I need to fill out? What, specifically, do I need to do.
Form 1040ES and the similar state tax for to make estimated payments/
To simplify things, take your gross receipts and subtract your expenses
incured in generating those receipts. Compute the self-employment tax on
that net amount, and the income tax on the net profits AND all your other
regular income - less your standard or itemized deductions and personal
expemptions.
This may be worth your time and the few bucks to hire a CPA or EA for tax
advise related to this, as well as your business in general. They'll help
you more than you know.
--
Paul A. Thomas, CPA
Athens, Georgia
--
<< ------------------------------------------------------- >>
<< 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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by removeps-groups@yahoo.com on May 27, 2008, 10:40 am
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> I believe it's my responsibility to send estimated tax prepayments to
> the IRS every quarter. But I don't know the specifics. Which forms do
> I need to fill out? What, specifically, do I need to do.
It's a good idea to pay yout taxes over the internet. For federal the
website is as follows and you will need about 2 weeks to create an
account.
https://www.eftps.com/eftps/
For states the website varies. For California it is
http://www.ftb.ca.gov/online/webpay/index.asp
BTW, you're already late on the April 15 payment.
--
<< ------------------------------------------------------- >>
<< 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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by ed on May 28, 2008, 6:27 pm
Please log in for more thread options > I'm doing some part-time contract work. I filled out a W-9 for my
> client and am paid directly.
>
> I believe it's my responsibility to send estimated tax prepayments to
> the IRS every quarter. But I don't know the specifics. Which forms do
> I need to fill out? What, specifically, do I need to do.
>
> I'm fairly clueless on tax issues. I'm used to doing regular W-2
> employee work, and that's idiot proof. I've googled for tips on this
> (I'm sure it's a common scenario), but I can't find a clear
> explanation. Thanks!
Your post indicates this is *additional * income for you and you are
still getting W-2 wages. If this is the casse you don't have to make
any instalment estimates if your withholding this year will be at
least as much as last year's total tax. (or 110% of last year's tax
if last year's AGI was over $150K). You can increase your withholding
any time to meet this "last year's tax safe harbor"., even one large
extra withholding in December. If you can't meet this minimum
requirement with withholding from your wages you will have to pay
estimates. As mentioned by others, you have missed the first
installment so you will either owe a late payment penalty on the first
installment or you will be governed by the Annualized income rules in
IRS form 2210 and its Schedule AI.
If you can't adjust withholding to eliminate the need for estimate
installments then calculating the Annualized Income Method allows you
to pay the least amount of installments to avoid a penalty. Whether
you moonlighted in the first quarter or not, the AI Method may
eliminate any penalty even thouigh you missed the due date for paying
the first installment.. or possibly even the second installment. It
depends on all your other income and deductions, annualized.
Get IRS Publication 505, and form 1040-ES and form 2210 and its
Schedule AI and Instructions for further information on this topic.
The web has volumnious information on paying estimates and you can
even find a *2210 calculator* there to do all the computations for
you.
ed
--
<< ------------------------------------------------------- >>
<< 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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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