Re: estimated quarterly taxes/annualized income installment

[http://dummy.us.eu.org/robert (Robert)]

I actually talked with a self-employed friend last night and she said I
don't make enough to have to pay estimated tax.

And, in fact, no single client has paid me more than $600 (thanks for
the info!) so I guess I won't deal with this until next year.

Thanks.

 > From: "g3" <http://www.cox.net/~g3>
 > Date: Fri, 13 Aug 2004 23:12:24 -0700
 >
 > First of all, you need to have your clients send you a 1099-MISC Form for
 > 2004 due for you to receive I believe by 1/31 for you to submit with your
 > income tax return, I believe, as you would with a W-2. They send this Form
 > only if they have paid you more than $600.00 per year for independent
 > contract labor services since you are not a Corporation. They then send a
 > copy of that Form to the IRS by 2/28. In other words you must declare that
 > income to the IRS and FTB. I think you file an Income Tax Return for
 > Self-Employed people, I don't recall the number of that Form. You can deduct
 > your business expenses such as a portion of your rent, utilites,etc., but
 > for the details, you should have your own tax accountant tell you. I'm not a
 > tax accountant, but rather a corporate accountant for privately held
 > manufacturing S Corporations. Your tax accountant should tell you how much
 > and if you need to make estimated tax payments quarterly, I believe it is,
 > based upon your last year's income. You need to tell your accountant if you
 > are filing jointly as a married couple. You can always go to an enrolled
 > agent specializing in income taxes or H&R Block if you don't want to spend
 > much on a regular CPA. There are so many rules that change yearly that I
 > wouldn't know in that specialty of accounting. Sorry I can't be more helpful
 > than that. By the way make sure you use business stationary with your name
 > and address on it when billing your clients and have business cards printed
 > to prove if necessary to the IRS that you are an independent contractor and
 > not an employee and that your clients have no power to tell you what to do
 > and when. They can only give you general instructions about each project;
 > the rest is up to you as to how you do it, etc.
 > Gail