Estimated Income Taxes due 6-15

[mickeyd]

http://taxes.about.com/od/taxplanning/ht/estimated_taxes.htm?nl=1

You need to make estimated tax payments if your income tax withholding will not fully cover next year's tax liability. This applies mostly to self-employed people, landlords, and investors. You need to make estimated tax payments at least every three months. This is because your income tax withholding (from your day job) may not be sufficient to pay your federal income tax in full by the end of the year. Figuring your estimated tax payments is quick and easy using these simple steps.

 

[Martha]

Thanks for the reminder.

Next year I am going to automate them.

 

[Outtahere]

How do you automate them? Sounds like something I should do.

 

[lazygood4nothinbum]

just got my notice from irs. last year i paid $56 penalty not knowing the rule. following are two links for auto prepay from previous posts by others...

private turbo tax http://tinyurl.com/rbj35

and the public one www.eftps.gov

 

[Martha]

And here is the thread that talked about automating payments: http://early-retirement.org/forums/index.php?topic=7116.msg128246#msg128246

 

[Outtahere]

Thanks Martha and LG4N ... I just have to find out if MA has a way to pay on line and I'm golden

 

[audreyh1]

How do you automate them?  Sounds like something I should do.

Yep it's great! www.eftps.gov. I logged on this weekend and scheduled the payment for 6/15.

Been doing it this way for at least 3 years now? Wonderful! (except for part about having to pay estimated taxes, of course ).

Audrey

 

[samclem]

The eftps thang works well--it is a little hassle to set up (it's a several step process), but then you're set. The only hitch for me is remembering when the $ are going to be automaticaly taken out of my account, since the dates are not on a regular schedule (thanks for the reminder mickeyd!). I think the IRS should allow /make it easy for folks to make the payments monthly if they want. (or, here's an idea: scrap withholding altogether and go back to the pre-1942 system of paying taxes at the end of the year)