Tax Law (Questions About Taxes)/Tax Penalty


Thank you for taking my question. I have done some freelance work this year and will make about $15,000 gross profit and after counting credits, self-employment tax, etc., my tax bill should be approximately $1400. This is my only job (I earned only about $600 last year, since I just started doing this freelance work) and I will file as a single individual.

I recently found out I was supposed to be making quarterly estimated tax payments this year. Obviously, I have missed several of these quarterly payments; my question is, assuming I did not make any quarterly payments (although I do plan to make one this Sept, but assume none for now) what kind of penalty am I looking at come tax time?

Nominal.    But you can avoid all penalty by doing a withholding which is treated as paid pro rata and not the day made.

One easy way is to take a distribution from an IRA for say 100x.   But withhold ALL the money.   Then make your estimated payment back to the IRA within 60 days. In the amount of 100x

No tax due on the Ira because you repaid it.  But the withholding will be treated as paid earlier this years

But to be honest.   The shortfall is pretty nominal

But if you are worried you could do the Ira trick

Ps.  You can only do one rollover like this per year  

Tax Law (Questions About Taxes)

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Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).


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