Hi Everyone,
I opened a sole-proprietor business a couple weeks ago and plan on closing it at the end of this month. I generated no profit, nor did I have any expenses. I also have a regular full time job (my employer withholds tax as normal). I normally file married, jointly with my husband each year.
My question is, do I have to pay a quarterly tax payment for this quarter?
If so, do I calculate all self employment income (which is $0), plus my regular job income, and my husband’s regular job income for the estimated quarterly payment?
Do i I have to continue paying any quarterly payments if I am required to this time?
Thanks!
since no income from business if the withholding on your wages is adequate no estimated tax filing is needed.
you can use the 2019 estimated tax section within the 2018 TT or use TT online tax estimator tax caster
https://turbotax.intuit.com/tax-tools/calculators/taxcaster
Ok thanks for the quick reply. So do I still have to do the paperwork and send it to the IRS for estimated payment even though it is $0? Also, the withholding on my wages is only tax withheld from that full time job. So no additional tax will be charged as penalty by the time I pay annual taxes?
like i said you need to check your withholding based on what you estimate your taxable income will be for 2019
if withholding covers 90% of the tax there are no penalties. if net taxes or balance due after withholding is $1,000 or less there are no penalties.
in these cases since there are no penalties there is no requirement to make estimated tax payments for any balance that's estimated you'll owe, you do not file $0 estimated tax vouchers
there will be no requirement to file schedule C in 2019 because you said there was no income or expenses.