Quarterly taxes

Forum|Forum|3 years ago
November 16, 2022
1 reply
11 views

I just started a business in Jan 2022 but first received the first income at the end of Sept. I did not file quarterly. I know I will owe social security payments but have otherwise had a loss up to this point. Filing at the end of the year will catch me up but I'm concerned about penalties. Can you speak to my unique situation? Thanks.

KochuK

Level 7

Hi Jessiegirl10, thank you for attending the event and posted questions.

Congrats on your new business.

Attached are Schedule C Profit or Loss From Business and its instructions

https://www.irs.gov/pub/irs-pdf/f1040sc.pdf

https://www.irs.gov/pub/irs-pdf/i1040sc.pdf

If you have net income (gross revenue less related business expenses), then income tax and self employment tax apply.

The fact that you receive income in September 2022 does not mean your business is profitable. Please use the attached Schedule C to estimate net income, if any.

There are four estimated tax payment dates: 4/18/22, 6/15/22, 9/15/22, 1/17/23. You can effect payment any time now until 1/17/23.

Regarding unlikely potential penalty, please refer to below link 2nd question/answer.

IES Estimated Tax FAQs

https://www.irs.gov/faqs/estimated-tax

Hope the above helps. Thank you

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