estimate tax question

Forum|Forum|4 years ago
February 26, 2022
10 replies
25 views

assume I am Uber driver making $100k a year, since it is 1099, no withholding.my tax due are $40k, so I have to make estimate tax for the coming year tax return. around $10k per quarter. how about 2 months later , Uber market is dead dead dead, no business at all, how i have money to pay the estimate tax quarterly then?

Bsch4477

Level 15

Since you had no or little income during the time period you posted you would owe no tax from that time period and would just skip that estimated tax payment.

samguanaAuthor

Level 4

how can you skip it? base on this year, i need to pay estimate tax. you cant just skip it.

DawnC

Level 15

You can just skip it. You are not required to pay estimated taxes. You should if you have no withholding and generate income, but it is not required. And if you generated no income in the quarter, you owe no tax.

Underpayment penalties are assessed if you don't withhold or pay enough tax on income received during each quarter. The estimated payment vouchers were based on expected income and things change. If you did not have the income that estimate was based upon, you would be overpaying tax by paying the voucher amount. You can't be penalized for taxes you did not incur.

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