Questions tagged [estimated-taxes]
97 questions
28
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If I overpay estimated taxes in Q1, am I allowed to underpay in the other quarters?
I'm an independent contractor and I sent in my first quarterly estimated federal tax payment for 2023, but I realized that I went way over. Is it possible to pay less in the coming three quarters (while still maintaining the same annual amount) and…
fishingforgoats
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Why are estimated taxes due "one month early" for the 2nd and 3rd quarters only?
According to the United States internal revenue service, federal estimated tax payments are due on this schedule:
April 15
June 15
September 15
January 15 (of the next year)
June is only two months after April. I would expect estimated tax…
Stephen Ostermiller
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Why pay estimated taxes?
It looks like the tax investment penalty is about 2.6%, which makes me wonder why anyone pays quarterly estimated taxes. Wouldn't you be better off putting that money into stocks and using the proceeds to pay the penalty? Obviously some people have…
teldon james turner
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Estimated Taxes after surge in income
Last year my self-employment income was $300k and I paid about $80k in federal taxes.
This year, in the first quarter, all of my business dried up and I had $0 in income. Turbo tax was advising me to make an estimated tax payment of $20K on Apr…
Fixee
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One-time estimated tax payment for windfall
I recently sold an investment that has generated a capital gain that is a substantial fraction of my 2020 income. My brokerage did not withhold tax (I think that is normal), but I am now materially underpaying my federal income tax for 2020 (ignore…
user217285
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US, estimated taxes - but for first filing?
Just curious - in the US - say it's the first time you are filing taxes.
(I suppose the only two possibilities are either (A) you happened to move from overseas or (B) imagine a highly successful teen idol type who suddenly made a lot of money and…
Fattie
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Estimated State payment too big --> money back; + 2018 Tax Reform
In Apr 2018, for 2017 taxes, I filed for extension and made a payment for estimated tax for the State & local taxes of NY of 20K. I was completely wrong, and ended up getting a State refund of 30K when finally filing in Oct 2018. (EDIT: emphasize…
ILoveCoding
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Will I be penalized for not making an estimated payment in the first quarter for a side gig that started in the second quarter?
I picked up a side-gig on March 30th, that pays me at the end of each month, so my first pay check will be towards the end of April, which is in the second quarter. It seems I have two options to make sure I am paying taxes on it:
Make estimated…
James Dunn
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5
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Is there a penalty to withholding more taxes at the end of the year?
Suppose that Bob realizes in November that he has severely underwithheld taxes and would have a large penalty due when he files. Since he works at a salary-paying job, he elects to increase his additional withholdings to include his entire…
ahaas
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How much will I benefit if I get receipts for child care? (Canada)
I am returning to work soon and will pay approx $13,000/year for care for my little one. I would appreciate feedback as to whether I am understanding the value of claiming child care on taxes...
I earn approx $35,000/ year and as I understand it, I…
NL Missus
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5
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estimated taxes and late penalties on highly "bursty" side income
I have a full time job where I get a W-2. In addition I occasionally freelance on the side as a contractor and receive a 1099-MISC.
The freelance work is very irregular and hard to predict. It's possible that I'll do zero freelancing one quarter…
Doov
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5
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Is there a threshold at which estimated taxes must be paid electronically?
In the United States, is there an income or tax threshold above which an individual is required to make their estimated quarterly tax payments by electronic means?
WilliamKF
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For 2021, What is the most Tax-Advantageous Way to Make a Charitable Donation that is Larger than my AGI?
I may be making a charitable donation this year (2021) to my school; it will be about 1.5 times my AGI.
What is the most tax-advantageous way to make this donation? If I make the donation in stock with a long-term capital gain, will it wipe out my…
ab2
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Can I make estimated tax payments instead of withholding from my paycheck?
My employment provides me with a W-2 at the end of the year, and I currently have taxes withheld from my paychecks. In the opposite of this question, Pay estimated tax using W-4 withholding instead of quarterly payments, I'd like to know if I can…
Hari
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Am I allowed to make estimated tax payment after deadline
About Jan 10, 2017 I received a surprise large disbursement/payment from a trust via check dated Dec 31, 2016. I assume the Schedule K-1 that I will eventually receive for tax year 2016 tax year will include it.
Despite what may be reported on…
AA040371
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