I have found that when I pay estimated taxes I'm always over paying.
Please give me some tax advice on this issue because my accountant insists on
estimated taxes.
Thank you,
Keith Gilabert
I'm not sure about overpaying, but I think if you expect to pay more than a
certain amount in taxes, you are required to pay estimated taxes. I think
what BizResearcher said above is correct. Check the IRS site.
BizResearcher is correct. You will pay a penalty if you do not make estimated
payments, or do not pay enough in estimated payments. Your accountant should
be able to come up with a more accurate payment for you. There are
instructions on IRS website and I can usually get very close if I use this
worksheet to figure out the estimate.
BizResearcher is correct. You will pay a penalty if you do not make estimated payments, or do not pay enough in estimated payments. Your accountant should be able to come up with a more accurate payment for you. There are instructions on IRS website and I can usually get very close if I use this worksheet to figure out the estimate.
I always think it's funny when an accountant, especially a contracted out
accountant, suggests anything...
When my small business started, I had an outside accountant tell me I needed
to pay quarterly...OK, I said. Then I looked at the penalties versus the
service. Without boring you with figures, I ended up paying once a year with
pentalies, which resulted in one charge by the accounting company. The
penalty I paid for failing to not pay quarterly was less than if I paid the
accountant to file quarterly. In the long run, I actually saved money by
doing it once and paying the penalty...Of course, this was when I first
started. The first thing I always tell new business owners is to not fear the
IRS.
If you are overpaying, then reduce the amount of each payment. IRS
requirements state that if you anticipate owing $1,000 or more in taxes, you
must have 90% of that amount either withheld from a pay check or you must
make estimated tax payments. If you fail to make the estimated payments and
you owe taxes, you will be charged a penalty. It is better to overpay
slightly than to be hit with a penalty. You may want to check with your
accountant to find out if he/she is paying estimated tax on your gross income
or on your net income. If he/she is making payments based on your gross
income and you have business expenses, you would be overpaying.
nlsidler | Window Shopper | 5/18/2012 - 8:31 pm
certain amount in taxes, you are required to pay estimated taxes. I think
what BizResearcher said above is correct. Check the IRS site.
applelau | Window Shopper | 5/17/2012 - 11:29 am
hit by a huge amount.
AbilityBooks | Performer | 5/11/2012 - 6:31 pm
payments, or do not pay enough in estimated payments. Your accountant should
be able to come up with a more accurate payment for you. There are
instructions on IRS website and I can usually get very close if I use this
worksheet to figure out the estimate.
hostilesolutions | Window Shopper | 5/16/2012 - 7:38 pm
accountant, suggests anything...
When my small business started, I had an outside accountant tell me I needed
to pay quarterly...OK, I said. Then I looked at the penalties versus the
service. Without boring you with figures, I ended up paying once a year with
pentalies, which resulted in one charge by the accounting company. The
penalty I paid for failing to not pay quarterly was less than if I paid the
accountant to file quarterly. In the long run, I actually saved money by
doing it once and paying the penalty...Of course, this was when I first
started. The first thing I always tell new business owners is to not fear the
IRS.
BizResearcher | Window Shopper | 5/8/2012 - 1:54 pm
requirements state that if you anticipate owing $1,000 or more in taxes, you
must have 90% of that amount either withheld from a pay check or you must
make estimated tax payments. If you fail to make the estimated payments and
you owe taxes, you will be charged a penalty. It is better to overpay
slightly than to be hit with a penalty. You may want to check with your
accountant to find out if he/she is paying estimated tax on your gross income
or on your net income. If he/she is making payments based on your gross
income and you have business expenses, you would be overpaying.
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