Hello ToddL99. Yes I have done an estimate and see what I would approximately owe in self employment tax. I currently am carrying forward business tax credits that will cover the federal taxes, I just need to do the self employment taxes. So I could do the 4 even payments I usually make every year that corresponds to the previous year - I usually just use that safe harbor. But because my self employment tax was $0.00 this year, my safe harbor says I don't have to pay estimated taxes and can just pay it with my tax return next year in 2022.
I prefer not to pay the government money until I earn it, which I don't know when I will be paid since I'm a Realtor.
I am just wanting to make sure the $0.00 from this year return will be safe harbor for next year. I am currently estimating using the worksheet of owning approx. $1300 in Self Employment Taxes. The Federal will be covered as I mentioned with business form 3800 credits.
Am I safe not paying any of the estimated tax payments then this year and just waiting till I file my taxes next year? I will owe I estimate over the $1000 but again I have nothing this year.
If I do choose to pay the estimated I was thinking about the 60% of the 2021 estimated, but who knows what I will actually earn. The 100% of the estimated I could do, and both are safe harbor, but the $0.00 from 2020 taxes I hope will ultimately protect me even if I choose to pay nothing for my Federal Estimated Taxes.
I am confused on which way to go. I can pay the lump sum, I have it and if I can I prefer to hold off paying the government until I owe it, I just don't want a penalty.
If I try to pay as I go and not in the 4 equal payments I dont want a problem with them saying i did not pay in april and then paid in june because I had a closing. That is why I just use the last years amount and pay 4 equal payments whether it is high or low I have been safe. It is also the easiest
Thank You,
Michele
