Quarterly Estimated Tax

AffApprentice

AffApprentice

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Nov 19, 2009
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Hey guys,

It just dawned on me that I need to start paying my "estimated tax" every 3 months. I started reading through the IRS documentation on it, and it's giving me a headache, especially since I think I only have to pay it for periods 2-4, and not period 1.

I've asked H&R Block to contact me so I can find out how much it would cost to just have them handle this shit. How do you all deal with it? Maybe it's easier than it sounds? I'm worried about paying penalties since I've missed the Q2 deadline...

Thanks.
 


Get a real accountant not H&R Block it won't cost much more and they won't be complete idiots most likely.
 
It's easy - you don't need an accountant. As long as your estimated payments are at least the amount of your income last year then you're in the clear. Just take last year's taxes, divide by 4, and make the estimated payments. If you expect to make less this year then last year then as long as your estimated payments cover 90% of your income tax this year then you're also in the clear.
Get form 1040-ES, it explains it.
 
For the love of (insert diety here) do NOT USE H&R Block unless you have one income source and make under 20K.

That said, do this. It's well worth it.

1.) Find a reputable CPA

2.) Pay him/her to do this for you the first time so you understand it.

3.) Go to them all the time.

Many things in life are expensive and over-rated. CPA's are NOT one of them. I can count a return of 3-4X the amount of money I've spent on CPA's and the savings I had due to them.
 
Whoa, your CPAs handle that annoying shit for you? Mine just labels the envelopes for me. I knew there was a reason to be suspicious when she told me she worked at a strip club for the other 9 months of the year, damn it.
 
+1 for the CPA route
I'm a contractor at my current company, and I just started in February. I'd never been a contractor before, always an employee.
I paid estimate taxes in April this year, doing (last year's total / 4) like mentioned above, but then come June I missed the deadline for payment #2. I was freaking out, didn't know what to do, very afraid of getting charged late fees.
In a moment of panic, I called a CPA that smaxor recommended me, and he said, approx. "In the first place, there are ways to get around estimate taxes if you file the right forms, but in the second place, I can already tell you'd save a lot of money by doing an S-Corp, and you don't have to pay this years taxes until January if you do that."

Homie hooked me up for $700, which I think was a steal -- $100 for his services, and $600 in fees to register my S-Corp (not bad, considering comparable services from legalzoom.com would be $500+), and I feel like I'm in the hands of a professional who's gonna look after my books for me. Even better, I don't have to pay all that money I was saving for estimate taxes till January 2011, which leaves me with more liquid assets to invest with returns.
 
uplinked said:
+1 for the CPA route
I'm a contractor at my current company, and I just started in February. I'd never been a contractor before, always an employee.
I paid estimate taxes in April this year, doing (last year's total / 4) like mentioned above, but then come June I missed the deadline for payment #2. I was freaking out, didn't know what to do, very afraid of getting charged late fees.
In a moment of panic, I called a CPA that smaxor recommended me, and he said, approx. "In the first place, there are ways to get around estimate taxes if you file the right forms, but in the second place, I can already tell you'd save a lot of money by doing an S-Corp, and you don't have to pay this years taxes until January if you do that."

Homie hooked me up for $700, which I think was a steal -- $100 for his services, and $600 in fees to register my S-Corp (not bad, considering comparable services from legalzoom.com would be $500+), and I feel like I'm in the hands of a professional who's gonna look after my books for me. Even better, I don't have to pay all that money I was saving for estimate taxes till January 2011, which leaves me with more liquid assets to invest with returns.
Click to expand...


This
 
Thanks, guys. I'll start looking up accountants - if anyone can recommend a good website to find one, that'd be awesome too :)
 
Get a CPA that is local to you. Interview them.

You'll be trusting you fucking money with these people, and hopefully, a lot of it. If you find one and things don't seem right, fire that bitch and get a new one. Make sure to ask them questions about how you can maximize deductions and shit like that.
 
Forget H&R or any of those places. They trains their people in a 4 week program taught by high school educated hoodrats.

Time to upgrade to a certified CPA. They only cost $150 or so an hour dependent on your area, very much worth it.
 
Ask someone who runs a small business who they use & why. Best decision I ever made. I lived in/paid taxes in 3 states last year, relocated my business from one state to another, and that was a massive pain in the ass. Couldn't have done it without this guy. My old accountant - a high-priced guy in NYC who charged much more than my new CPA - told me to get lost because it was too complicated for him. New guy said it would be a pain in the ass, charged me probably less than he should have, and was pretty flawless.

It's not worth fucking around with. The first thing my CPA told me is that his goal is to always try to save clients more on my taxes than if they had done it themselves. I probably wouldn't have gotten half of these deductions without him, and each one was by-the-book.
 
This is all good advice. DEFINITELY look for a CPA local to you and schedule an interview.
 
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