Estimated Quartley payments?

MatthewRyan · #1 03-22-2006, 02:33 PM

I saw an account yesterday who recomended that I send the IRS estimated quartley payments for my poker winnings. Does anyone else here do this?

MNpoker · #2 03-22-2006, 02:43 PM

Yes.

I pay all my taxes quarterly and just add on for the estimated gambling wins.

MatthewRyan · #3 03-22-2006, 02:45 PM

Thanks MNpoker, on more question: how do you calculate what your quartely payments will be?

Jeffage · #4 03-22-2006, 03:00 PM

Quarterly estimated payments are based on last year's earnings (pretty much dividing your total tax liability by four). You MUST make these if you would expect to owe the IRS more than a grand on April 15 - otherwise, you are getting an interest free loan from the IRS and they don't like that (since with normal W2 income, taxes are automatically taken out when you're paid). Your accountant should set this all up for you - your first quarterly payment for 2006 is due April 15 (in addition to balance owed from 2005, if any).

Jeff

Disclaimer: I'm not an accountant, this advice is worth what you paid for it.

MatthewRyan · #5 03-22-2006, 03:23 PM

My account said to take 15% of the qaurter's net and mail that to the IRS, as my bracket was the 15% bracket this last year and probably will be this year. I will not be filling as a pro, fyi.

Does the 15% idea sound about right as far as what I will owe in the end?

Thanks all,

Matt

MNpoker · #6 03-22-2006, 03:30 PM

[ QUOTE ]
Thanks MNpoker, on more question: how do you calculate what your quartely payments will be?

[/ QUOTE ]

I hire someone.

MatthewRyan · #7 03-22-2006, 03:55 PM

Each quarter?

Does anyone else think the strategy of my above post sounds good?

emptyshell · #8 03-22-2006, 10:06 PM

Assuming you make more this year than last, you'd be paying more sooner than you have to. To avoid fees, you just have to pay estimated taxes based on your liability for the previous year. Of course, if you're making less, it's a good plan.

IdiotVig · #9 03-23-2006, 11:39 AM

[ QUOTE ]
Quarterly estimated payments are based on last year's earnings (pretty much dividing your total tax liability by four). You MUST make these if you would expect to owe the IRS more than a grand on April 15 -

[/ QUOTE ]

So what happens if you didn't have any quarterly earnings from poker last year in Q1, but would meet the above requirement of owing 1K in taxes by April 15th? Would you still have to file quarterly, or wait until the end of the year?