Hi there, I'm not sure if it's ok to hijack another user's question, but mine is related to quarterly taxes.
What's the penalty about, can you give an opinion/rule of thumb etc? As an example, I didn't want to remember to pay quarterly, so I paid 20% of my known contracts in July. Am I "clean", or do I have to pay quarterly (how strict are they)? The 1040 ES document link you provided noted "A penalty may apply even if you have an overpayment on your tax return." Great.
How "off" can you be in your estimates? I saw the 1040 ES document used a what looked like a $1,000 variance (pretty small variance if you ask me).
This year will be the first time I'll have to pay taxes on business income so I'm trying to learn the real rules of the road (vs. those in theory/high level ones).
Looking at the tax rate schedule on page 7, is it really as simple as between x and y +.24*(actual - x), divided by 4 (quarters)?
