Do I need to send a payment to the IRS if I sell stock or am self-employed?

2007-07-23 10:04:41 UTC

If you are self-employed you should be sending in quarterly tax payments, also, if you sell stock during the year and it's a large enough gain you also might want to send in quarterly payments for that as well. The IRS says though to avoid any penalty for underpayment of taxes you need to pay either 100% of your prior year tax (110% if you are a high income taxpayer), or 90% of your current year tax. Also, there won't be a penalty if your tax owed is under $1,000.

?

2007-07-23 09:06:07 UTC

What you are referring to are estimated tax payments. If you are making income that will result in tax liability greater than $999 you should have been making them every quarter starting on April 15, 2007. The simple fact that you are self employed or selling stock is not the determining factor. However any income not covered by withholding will increase the likelyhood that you should make estimated payments.

Tina

2014-08-15 07:18:44 UTC

I invested 100,000 dollars of insurance money that I received after my son passed away in stocks in not taxable in 2011 cashed in for 48,00 dollars Ithe irs is sending me a bill years later for 16,000 dollars my stock person can not figure out how to help me what paper or files does he need to fix this I have done everything the irs wanted me too back tracked all the way from 2006 when this all started from the lawyer on with a letter from the lawyer they are driving me crazy please help me.

Cali Girl

2007-07-23 09:00:28 UTC

I called the IRS b/c I get MISC-1099's each year. I was told that I should make quarterly payments based on the amount I have made.

I have never make payments and never get fined.

2007-07-23 09:06:45 UTC

http://www.irs.gov/businesses/small/

You should be quarterly estimated tax payments to ensure your taxes are paid. The above link should provide all the information you are looking for. Good luck....ughh

sortaclarksville

2007-07-23 08:57:53 UTC

You need to make quarterly payments. If you do not, you are subject to fines.

Info@bcbsinc.com

2007-07-26 21:19:32 UTC

I have been in accounting for close to three decades and our firm services accounts in over 25% of the US and have a variety of clients. Individuals, LLC, Partnerships, Corporations, Non-Profits and otherwise. In other words we do not make comment based on not knowing and if we do not know we say so. We never attempt to give out advice to tax anything on the cuff, because Dr. Albert Einstein was correct, the Most complex thing there is is the income taxes. Yes he said income taxes. So stated, assuming he was right and there is very good reason to indicate that he was, we stand behind what we say to you on this tax forum questioning system. Now that we've said that,

Toss every response up to this one and the ones we have indicated herein, besides Matthews because as Mathew attempts to relate to you (cudos to this person), there is not enough information. It will depend on your tax situation. amount of income, how much if any you owed last year whether you are subject to estimated tax payments and..... okay, now you get the idea. any fool is a fool to answer the question without full knowledge and proper use of etiquette surrounding a system of rules so complex even the Good Dr. Albert Einstein called complex. aka there are 20k different was to answer your question and this may be very true.

Here is why you should toss them all and I do not relate all of the problems here, just some for everyone:

• sortaclarksville - do you work for H&R Block? Don't tell me you took the 12 week course on income taxes.I remember a person who called us from California that his own accountant, yes I did say accountant, we're not perfect, told him that he had to pay estimated tax payments. Well he is now a client because he agrees to not knowing is the worst advice you may receive. I hope you dont' prepare taxes or give out tax advice your statement is horendous based on tax codes.

• shamieya - Based on your response? You may very well get someone in trouble if you do taxes. For the sake of all please find a different occupation if you do them.

• Cali Girl - I wish we could all be so lucky and sorry but this guy is not you. if you never get fined you dont' make enough and not subject to them no doubt or guess what? Yep, you'd be in much water if you were. If you're lucky to get away dont' worry they can retrocatively apply things with the Govt.

• JANET S - your link is a good one and it may help someone in business but guess what? Did he say that and how many odd numerous pages will a person have to search through to find what he is searching for. 1k, 10k You assume without knowing something when you assume he is in business.

Did you know there are over 30k and more pages last I checked of instructions just to Form 1040 and that doesn't include the many pages that you have to wade through in business or other topics to find the answer to this good person's question.

Perhaps we would all be smarter to read them all but lets try to get more specific shall we? If an accountant was charging you to read this stuff to find what we are seeking to find here, you'd be broke in a month. So would any business who took advice from you. I am sorry if you don't agree but you click on your link how many pages and links do you see.

Well which one is the right one to look at, if we assume it is there. Is it there? Providing the linkage that you did, we assume that you do not know it you will find it there.

And to let you know we may very well shortly be partnered with the Internal Revenue Service as well and currently under review for that.

You yourself may wish to check out our website we have much stuff that you may very well be interested in as well. Particulary if you are a seasonal tax preparer.

Type in estimated tax for individuals in the IRS tool bar and search at Irs.gov and that would have been right or can you just type in do I have to pay estimated taxes? What links would one find, Estimated Taxes. Pub 17 Your Federal Income Taxes. and the most promising one(though there are perhaps hundreds of other links) , Frequently Asked Questions - Keyword: Quarterly Estimated Tax Payments Frequently Asked Questions. http://www.irs.gov/faqs/faq-kw146.html That's right, that is the right one. Now take note, of the link placement here please. Is it under the SBSE Small Business Self Employed Site links as you direct. If you answered no, you would be correct in assuming this. It is not. If you say that it could be a link on some page, of the hundreds that you direct to you may be correct; however, do we bill you for our time in tying to find this out or do we bill this questioner?

Once again, I am sorry but your response is flawed and would cost anyone countless hours of research for nothing. "Well I'm not a business."

• PepsiLime - Top contributor - Why if I may ask are you giving out answers on this forum? You surely did not receive top responder points for this did you. Let me guess you just have time to waste all the time in answering questions off the cuff and people are either naive or gullible to listen and give you the best ratings. Okay, perhaps at times you get lucky.

My dear person you need to read the IRC more closely because even if you are self employed as we are, you may not be subject to estimated tax payments or should we all give out free loans to the govt. Please do you research, top contributor or not before you answer such question less you meet with those who do "actually" know.

Coodos to you Matthew. I'd hire you.

Sorry folks all responses are inconsiderate of the IRC and this is what will get people in trouble. Understand the rules and don't believe everyone is the same, that all situations are the same, that all businesses are the same, that any is ever the same?

Now one other mention, why doesn't anyone give this poor guy any "useable" sources? Http://www.irs.gov and then type in the name of the publication or better yet the wording next to it that we have provided to you here.

All IRS stuff pubs and forms now.

IRS Form 1040-ES, Estimated Tax for Individuals

IRS Publication 505, Tax Withholding and Estimated Tax

IRS Tax Topic 355, Estimated Tax

IRS Publication 334, Tax Guide for Small Business

There, that should keep you busy for now. You will be so delighted to see that the IRS Code, aka Internal Revenue Code (IRC) is such lovely reading.

If you want to receive "free" tax reminders check out our site and sign up for them. Over 500 pages of lovely stuff and growing at http://www.bcbsinc.com.

Wayne Barney

President / Accountant

BC Business Services, Inc.

cashmaker81

2007-07-23 08:59:13 UTC

You just report those earnings with your regular tax return in January.