Hello,
Not sure if I am in the correct forum, but thought I would try here.
I have had a full time job and a self-employed/moonlighting business the past 10 years. I always took out extra withholding from my full-time to cover the self-employed portion. So, I have never had to pay quarterlies.
This September, I decided not to go back to the full time (teacher) and focus on the self-employed. Since the amount of withhholding from the full-time earlier in the year will not cover the self now, I realize I will have to pay quarterly.
My first quarter as completely self-emplyed will be this last quarter. Does anyone know what the penalty (%wise) will be roughly since I did not pay the first three quarters and will definitely owe with or without the 4th quarter payment? My guess is that before I pay the 4th quarter, my taxes for the year (after deducting the withholding would be about $4,000).
Should I pay the fourth quarterly tax or just start the new year with quarterlies? In other words, will the penalty be different if I just owe for not taking enough withholding out for the year or will it be less if I pay the fourth quarter (though not covering everything).
Thanks,
Mike
Not sure if I am in the correct forum, but thought I would try here.
I have had a full time job and a self-employed/moonlighting business the past 10 years. I always took out extra withholding from my full-time to cover the self-employed portion. So, I have never had to pay quarterlies.
This September, I decided not to go back to the full time (teacher) and focus on the self-employed. Since the amount of withhholding from the full-time earlier in the year will not cover the self now, I realize I will have to pay quarterly.
My first quarter as completely self-emplyed will be this last quarter. Does anyone know what the penalty (%wise) will be roughly since I did not pay the first three quarters and will definitely owe with or without the 4th quarter payment? My guess is that before I pay the 4th quarter, my taxes for the year (after deducting the withholding would be about $4,000).
Should I pay the fourth quarterly tax or just start the new year with quarterlies? In other words, will the penalty be different if I just owe for not taking enough withholding out for the year or will it be less if I pay the fourth quarter (though not covering everything).
Thanks,
Mike