paying estimated taxes as a contractor

[spaterson7]

I worked as a contract employee last year and just half of this year.  I have been paying estimated taxes this year but because my work ended in July, can I stop paying that for the remainder of this year?

[Anonymous · Accepted solution]

Hello spaterson7, and thanks for your question!

You asked, if you can stop paying  your quarterly estimated payments because your contracted work ended in July for the remainder of the year.

Since your work ended in July and you are no longer receiving any contracted or self employment income, you may be able to adjust or stop making estimated tax payments for the remainder of the year. However, before doing this you will want to estimate your total income, deductions, and credits for the full year. If you expect your total tax liability for the year to be lower than the amount you have already paid in estimated taxes, and if you expect to owe less than $1,000 or more in taxes for the year, you can adjust your next estimated tax payment to a lower amount or stop making payments all together without being subject to the underpayment of estimated taxes penalty. 

For additional information please click on these links:

• Commonly Asked Questions on Estimated Taxes 
• Estimated Taxes: How to Determine What to Pay and When 
• A Guide to Paying Quarterly Taxes 

Please feel free to reach backout with any additional questions or concerns you might have!

Have an amazing rest of your day!

Terri Lynn, EA

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