Should you file estimated taxes

Discussion in 'Accounting and Legal Advice' started by gregriv69, Dec 12, 2006.

  1. gregriv69

    gregriv69 New Member

    If you have worked as an employee, you know that the net earnings on your paycheck are much less than your gross earnings. because your employer withheld money for social security, Medicare, and income tax, and sent that money to the government.
    When you are self-employed, the entire burden for paying employment taxes and prepaying estimated income tax liability is left to you. That's why you need to pay estimated taxes in quarterly installments to the U.S. Treasury, otherwise, you may be subject to underpayment penalties.
     
  2. nofreeride

    nofreeride New Member

    I place all taxes in a money market and extend until October 15th. Some of the penalty is off-set by the interest earned in the money market.
     
  3. sparkle

    sparkle New Member

    pay estimated taxes in quarterly then put some every month in a money market that way draws interest through the year..In case you still own at the end of the year
     
  4. pcwork

    pcwork New Member

    It is better to pay a little more in estimated taxes , instead of paying interest later
     

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