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?
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.
how can you skip it? base on this year, i need to pay estimate tax. you cant just skip it.
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.
The estimates are optional to pay. They don't get sent to the IRS with your return so they won't be expecting them. If you want to pay less you can cross out the amount and write in a new amount.
but this year, i chose to pay estimate tax for next yr already, at least there is some way i can tell IRS, that market change i font have that income anymore, i don't need to tell them anything then i can just skip it?
Right you do not have to tell them anything. You can skip paying the estimates or pay less. It gets reconciled on your tax return next year.
What? You send in the 1040ES slip with your check or pay the estimate directly online.
Pay directly on the IRS website https://www.irs.gov/payments
Be sure to pick the right kind of payment and year.....2022 Estimate
IRS will have the info about ur estimate tax, everything file together