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gregriv69
Forums Member
Joined: 23 Oct 2006
Posts: 97
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#1 · Posted: 13 Dec 2006 02:33
If you have worked as an employee, you know that the net earnings on your paycheck are much less than your gross earnings. because your employer withheld money for social security, Medicare, and income tax, and sent that money to the government.
When you are self-employed, the entire burden for paying employment taxes and prepaying estimated income tax liability is left to you. That's why you need to pay estimated taxes in quarterly installments to the U.S. Treasury, otherwise, you may be subject to underpayment penalties.
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nofreeride
Forums Member
Joined: 15 Dec 2006
Posts: 31
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#2 · Posted: 17 Dec 2006 11:14
I place all taxes in a money market and extend until October 15th. Some of the penalty is off-set by the interest earned in the money market.
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sparkle
Forums Member
Joined: 25 Sep 2007
Posts: 12
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#3 · Posted: 26 Sep 2007 00:56
pay estimated taxes in quarterly then put some every month in a money market that way draws interest through the year..In case you still own at the end of the year
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pcwork
Forums Member
Joined: 12 Aug 2006
Posts: 1650
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#4 · Posted: 26 Sep 2007 16:53
It is better to pay a little more in estimated taxes , instead of paying interest later
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