If I am filing quarterly taxes on my business, how does the work when I file taxes at the end of the year.
You'll need to sign in or create an account to connect with an expert.
Estimated taxes are filed quarterly. Every 3 months, you'd send a check to the IRS. At year's end, you would keep total of all checks sent to the IRS and show them on your tax return. Turbotax will handle the rest for you.
Here is a link that has an extensive amount of information that could be very helpful to you.
https://www.irs.gov/pub/irs-prior/f1040es--2021.pdf
For context, Page 9 shows the 4th and final payment with the other three immediately after it.
Estimated taxes are filed quarterly. Every 3 months, you'd send a check to the IRS. At year's end, you would keep total of all checks sent to the IRS and show them on your tax return. Turbotax will handle the rest for you.
Here is a link that has an extensive amount of information that could be very helpful to you.
https://www.irs.gov/pub/irs-prior/f1040es--2021.pdf
For context, Page 9 shows the 4th and final payment with the other three immediately after it.
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)?
This is the best explanation of quarterly estimates I've found. Estimated Taxes: How to Determine What to Pay and When and A Guide to Paying Quarterly Taxes
You can always try TaxCaster and see what the estimates will look like too.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
vze56v6x
Level 2
1745
New Member
arjay68
New Member
Jillbug
New Member
Rlambertsen1029
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.