What is a good method or formula for calculating the estimated taxes to deposit each quarter, since the income varies so much? The 1040Es indicates about $6000; however, it should be nearer $9000.
Last quarter I used a formula I found on the IRS site, but it is not exactly aimed at this specific business type. Then I calculated by best mathematical estimate, and decided an an amount not below what would be needed.
Is there a better method for me to use?
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Hello @4Rosie,
Thank you for being here and participating today. We are so happy you are here!
I am sorry that the IRS worksheet doesn't seem to work for you. Here is an article that may be more helpful
TurboTax Estimated Taxes: How to Determine What to Pay and When
Keep in mind that there might not be a perfect solution to the varying income, but you can pay different amounts for your quarterly payments based on your net profit.
The best calculation or estimation I have found has been the IRS 1040 es worksheet. You can always pay what you feel is appropriate even if it doesn't align perfectly to the worksheet. You can use that as a base line.
I hope this was helpful to you and keep on doing an amazing job!
Cheers,
Holly W
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