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#1
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estimated tax ?
What is the point of pro poker players doing estimated tax payments when you know exactly how much you made in the quarter? What am i missing here?
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#2
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Re: estimated tax ?
I believe your estimated tax is based on your yearly income but I'm not sure. Never paid it when I was advised to do it, just paid the full amount every year in full--no problems. Of course that was a long time ago when I was paying taxes--now I just fly under the radar.
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#3
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Re: estimated tax ?
If your tax due is over $1000, you'll get hit with an underpayment penalty if you don't prepay.
The underpayment penalty is about 5.2% |
#4
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Re: estimated tax ?
[ QUOTE ]
If your tax due is over $1000, you'll get hit with an underpayment penalty if you don't prepay. The underpayment penalty is about 5.2% [/ QUOTE ] 5.2% of what? what you originally owed? |
#5
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Re: estimated tax ?
and are these estimates only for federal taxes? i believe thats what they said but i dont have the forms with me. so you dont need to pay state tax until the year ends?
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#6
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Re: estimated tax ?
Pay your estimate.
If you don't, there's a penalty (interest of your payment) until the next quarterly estimate is due. If by then you still haven't pay, then more penalties. |
#7
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Re: estimated tax ?
[ QUOTE ]
Pay your estimate. If you don't, there's a penalty (interest of your payment) until the next quarterly estimate is due. If by then you still haven't pay, then more penalties. [/ QUOTE ] |
#8
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Re: estimated tax ?
There are no penalties, just an interest payment. It comes out to about 8% on an annual basis. Its confusing and the IRS tries to scare the crap out of you with their "mumbo jumbo" wording. THERE IS NO REQUIREMENT TO PAY ESTIMATED PAYMENTS.
To do a quick calculation of the interest (the IRS calls it a penalty), its 4% times tax due, give or take. The scope of your question is to broad to give a complete answer, in this type forum. But if your tax is $5,000, just pay on April 15th. The interest will be about $200, which I'm sure you can makeup on prudent investing or cardplaying. This issue is EZ for an experienced preparer, but its just to complex to explain in full. I hope this helps. |
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