Indy and Taxes

[axeman462]

I never been fully self-employed before. Last year I was contracted with Bankers as a 1099, and during one of the training seminars toward the end of my stay with them they mentioned filing taxes quarterly.
this year is my first year being indy. Is it necessary to file my taxes quarterly, or can i do it yearly as i always have done?

 

[b61mack]

You can get a way with it the first year. Because now you will have an idea, on what to pay quarterly.

 

[Chazm]

I never set it up quarterly and now I'm paying for it big time. Guess its time to get a tax guy

 

[axeman462]

I never set it up quarterly and now I'm paying for it big time. Guess its time to get a tax guy

how are you paying for it big time?
do you get penalized if you dont file quarterly?

 

[xrac]

how are you paying for it big time?
do you get penalized if you dont file quarterly?

Yes you are penalized if you do not make enough estimated tax payments. The rule is you do not face any penalty if you do estimated tax payments at least as great as the previous year's liability.

 

[Crabcake Johnny]

Years and years back I was told...promised that I didn't have to pay quarterly estimated taxes on 1099 status. So I just paid annual for 5 years. 8 years later I got the nastry-gram from the IRS and got it worked out but I had to pay the penalties.

Get tax advice from a tax professional. http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Estimated-Taxes

 

[billberry12]

"Get tax advice from a tax professional"

This is the best piece of advice I have seen on this forum. Not doing taxes correctly has been the downfall of many many agents in this industry.

This is a business, not a job. Please run it like a business.

 

[Chazm]

how are you paying for it big time?
do you get penalized if you dont file quarterly?

I didn't think I was. It just sucks paying the taxes all at once. Now xrac has me worried that I should be paying more

Edit: just read the 1040ES form. Guess I'm getting a tax lady