I was self employed up until 2 weeks ago... what do I do about quarterly estimated payments? Pay it all this first quarter and then just stop paying them for the following 3 quarters this year? Is there a form I should submit informing that I'm no longer self employed so that they don't get mad when I stop sending quarterly estimated payments? Or do I just split the quarterly estimated payments for this year across the 4 different quarters and then just stop the altogether the following tax year? Or something else? Thanks
Easy one first, there is nothing you need to notify IRS you are no longer Self-Employed.
OK now the estimated tax payments. You did work as self-employed from Jan-first part of March.
You can pay the first estimate and be done with it, or split it up and pay the first one over 4 quarters. Choice is yours, I like to keep things simple, so if I have the money pay it and be done for the year.
Easy one first, there is nothing you need to notify IRS you are no longer Self-Employed.
OK now the estimated tax payments. You did work as self-employed from Jan-first part of March.
You can pay the first estimate and be done with it, or split it up and pay the first one over 4 quarters. Choice is yours, I like to keep things simple, so if I have the money pay it and be done for the year.
Hi. What if I am in a similar situation (no longer self-employed) but I have already paid 2 quarterly estimated payments (for April and June) and don't owe anything else. Do I have to continue with the 2 other payments later this year even though I don't anything and am not working? I am under the impression that I am expected to do 4 EVEN payments during the year, and that if I pay unevenly I have to complete extra paper work at tax time and perhaps pay interest on the remaining two unpaid payments. Is the correct?
No. You don't have to pay them. They are optional and the IRS isn't expecting them. Unless you will end up owing a lot on your return next April. But usually it's the other way around. If you only pay the last quarters you might owe a penalty for not paying the early quarters when you actually earned the income. But if you paid enough so far it's ok.
I thought the payments were mandatory. Good to know they are not!
VolvoGirl, that is incorrect. They are definitely mandatory if you expect to owe $1000 or more in taxes on the amount of self employment income for the year. If you do not pay enough quarterly tax in, you may be penalized if the amount you still owe at tax time for self-employment income is $1000 or more.
If you have already made two quarterly payments, and now expect that your estimated quarterly tax should be Zero for the next two quarters, then the IRS website says to complete a new 1040-ES worksheet for your records to show the new figure. Anytime you need to amend the quarterly amount, you do a new worksheet for the new quarter. I urge you to go to the IRS website and open "Form 1040-ES" and read the first page of that publication.
I am no longer paying myself nor have any employees to pay through payroll. I stopped and did nothing. Now that the 1st quarter has passed, I received a letter that I owe $30 late charge fo rmy report. So I believe I need to do something. If I didn't when why would they send me a late charge for not filing?
If you got a fee you must be using a payroll service.
Review the "terms of service" you agreed to.
@TheBlackSheep69 A $30 letter from WHO? Turbo Tax or the IRS or ?????
We used Quickbooks to pay our employees and filed through quickbooks our quarterly payroll tax report. This was back in 2022 until slowly, we no longer had employees. I stayed on payroll until mid-end last year. When I stopped taking payroll for myself, I simply just stopped and didn't do anything...and received this in the mail about 1 month ago.
I am not required to do anything, then why the fee?
If i am required, what do I need to submit and to whom
Thank you
Maybe you should ask in the QuickBooks forum. Go over to the QuickBooks forum here…