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you need to be paying quarterly estimated taxes(nm)

Posted By: nuther IC on 2006-03-24
In Reply to: To all ICs claiming huge deductions...(sm) - Very Upset


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Is MQ still paying quarterly bonuses? SM
I was expecting to get a July 15 bonus. Has this changed? TIA
Paying quarterly vs yearly

When I read the post regarding going from quarterly to yearly for IC taxes I got excited.  I used to pay yearly until my tax guy told me to pay quarterly which I reluctantly started doing.  All those years I paid yearly the IRS continued to send me quarterly tax payment vouchers which I ignored.  Ok, so my point is, I just got off the phone with the IRS, explained my situation, IC who works production, doesn't make the same month to month, year to year and she STILL says I HAVE to pay quarterly and at the end of the year send in form 2210 which I think she said is an annualization form which will enable you to escape any penalties for sending in less if you made more last year.  I do know if you have children there are circumstances that will enable you to file yearly rather than quarterly but I have no children at home so I didn't really pay attention to that. 

how do you get away with paying yearly? the IRS determines if you should pay quarterly so
unless you are having a great deal withheld from hubby's check and only paying a little bit from yours, I do not see how you can be complying with the law by paying yearly. The IRS doesn't like that. They want their money NOW!
Quarterly Taxes
I'm sure what state you live in, but in NY State I pay quarterly taxes to Federal and State. I get coupons in the mail at the beginning of the tax year, the deadlines for payment are in April, June, September and January. Basically you pay as much as you want towards your estimated taxes. I believe there is a percentage as to how much should be paid in order for it to be most beneficial to you at the end of the year. Not sure how helpful this is, but I'm surprised your State is saying it's not necessary to pay quarterly unless you can just pay a lump sum estimated tax amount.
quarterly taxes
You need to either go to the IRS website or call an IRS office.  They will direct you correctly and give you the proper paperwork, etc to file quarterly.  If you don't file quarterly (depending on your circumstances, children, etc) you stand a chance of being fined. The website also defines as  to whether you should file quarterly and lists the circumstances where you don't.
Quarterly Taxes

I send in 35% of all that I have made up to the date taxes are due.  You do not need to categorize it, just make sure you send in enough.  Your percentage may be lower depending on other factors...spouse income and his/her withholdings, deductions, business expenses, etc.  But 30% to 35% should be pretty close. 

It is better to send in a little too much because if you owe (as I did for 2005, my first year filing quarterly), the IRS will send you a bill for interest for the amount you underpaid each quarter.  Plus, of course, the amount under paid.

You can pay quarterly taxes yourself without

the help of an accountant.  You can download the forms from the IRS.  If you are married you can have extra taken out of your husband's check instead of paying quarterly taxes. 

I think most people figure on saving 30% of their income to cover taxes. 

I don't pay quarterly taxes. My husband
as 0, so they take out the maximum possible, PLUS he has them take out an extra $100 out of every check to help cover taxes on my income.  Usually when we do taxes we owe an additional $1000 to $1200 after what he has taken out of his check, my business expenses, and our itemized deductions.  We just write a check and send it in with our taxes.
question about quarterly taxes
I have been trying to figure this out and I haven't quite understood it yet, but since it is posted, here goes, where do I send the quarterly taxes and how much? I sent an email to my state tax commission about this, but what I got back from her is that it is not necessary to pay quarterly, so that was not very helpful. Please excuse any typos, I am very tired.
What are the dates quarterly taxes are due?
New to IC status, ? re: quarterly taxes

I apologize if this not the correct board to post this question.  I began working as an IC the last couple of months last year and didn't make enough to have to  pay taxes. However, for the 2008 tax year I will need to pay quarterly taxes to avoid being penalized. Is this something I can set up myself or do I need an accountant?

I have a full-time job that does take out taxes (not as an MT) and what would be the best way to determine the percentage I should be paying on the IC MT income?

Any advice appreciated. Thanks!

Most ICs pay quarterly taxes. Go to the IRS website and print
off a form, send it in with taxes.  IRS may send you some forms after that, if not you can pay as above. 
For IC MTs, when you pay your quarterly taxes that you calculate do you also add in the 15% social s
First time doing this.
Do you pay quarterly taxes? Can you pay Social Security (sm)

I have always just filed at the end of the year.  Does everyone else (IC) file quarterly?

Also, if I want to pay into my social secirty on my own, can anyone tell me how to do that?



Any ICs pay their taxes quarterly online at the IRS site?

I am thinking of doing it and just wondered how well it worked.  Can you also pay your state and SE taxes there too?  It really wasn't very clear online, at least to me.

Even after paying taxes, you end up with more


As an IC when paying taxes, are SS and fed taxes sent SM
to the same place?
If you do your taxes properly, you certainly SHOULD NOT end up paying...
40%.  Obviously if you have no deductions other than the standard, you will pay more, but even with only the standard deduction, you shouldn't be paying 40%.
As far as paying taxes, if you hire as IC..
you don't have to pay any taxes for your friend. At the end of the year, or actually the beginning of next year, you will have to fill out a 1099 and send it to her and file a 1099 summary report with the IRS and then you report what you paid her on your taxes in April. You can purchase the 1099 forms at Staples or any other supply store. You might speak with your accountant (if you have one) and see what he says but that's all I had to do.

Also, if you are setting your own rates, I would go to the 65-character line for all clients if I was you. It's wise to make up a contract for each client and have them sign that as well. You can probably find sample contracts on the web.

Good luck! If you have someone willing to work for you, farm out some of the work that you can't handle and see where the chips fall and then you can decide if you want to stay with the national, etc. Word of mouth spreads fast in this biz so you might end up with more clients sooner than you think and then you can call your own shots. :)
But the husband will be paying taxes
If he becomes the IC and they earn 24,000 in a year on IC income and he pays her $10,800 -- she will still pay taxes on that but it will just not decrease her social security of whatever it is. And she will have to pay the 15.75 SS on that.  He will then pay income tax and the social security on the 13,2000 that is left.  Even though she does all the work.  Someone will still pay on the remaining amount.  So will they be ahead -- NO.  She probaby should have just become an IC out and out and wait to collect her retirement or SS.  But there is a difference between SS and taxes.   So when they combine their income they will still be paying taxes on that total amount, and if he earns anything it will be higher than just that. 
I agree too. WE are paying SS taxes--sm
which is SUPPOSED to be an account to help people after they retire so they can continue to live a reasonable life. It is NOT a handout, and I think the poster who suggested such was thinking of SS disability, which is not the subject of the conversation at hand. Some are just LOOKING for an excuse to judge someone else.
To clarify: 6-8 CPL with NO BENIES, PAYING 40% in taxes IS a ripoff
Line rate with benefits and without is a BIG difference.

IC's get robbed. 7.5 cpl with no benefits is rediculous.

If you're making 15 CPL as an IC you're only making/bringing home the equivalent of a 7.5 CPL benefited MT.

So I can see why you would gripe.

Now with full benefits and taxes paid and insurance and 401K and PTO and holidays, etc...7.5 CPL is TOTALLY acceptable.
I'm with you on the illegals, but paying taxes is not an insurance policy.
START paying property taxes?!?!? Honey I HAVE BEEN all since I got this place!!!
"If you want to be treated like everyone else, then pay taxes like everyone else"

Well thanks for ASSUMING that you knew that I didn't pay taxes. Every single person in this place that I live (300+) pay taxes. We don't own land so we don't pay taxes on that. We pay it on the home. Then our rent payments for our itty bitty pieces of land helps pay the propery taxes for the site.

In Michigan they don't? Seems hard to believe they would do that. If they don't pay it on the home then I would think they would paying it on the land or if they are in a park I would think that the park OWNER would pay the property takes for the large site.
New IC, estimated tax?

After leaving the Q I am now an IC.  Do I need an accountant to handle my taxes?  We have been doing our taxes ourselves since we got audited because of a crooked accountant and I am afraid to trust one again.  Do I have to pay estimated if we file jointly?  If I have to pay estimated, how do I go about it?



Where I used to work, they estimated SM

that one minute of dictation was equal to approximately 11.5 lines.  So 130 to 140 minutes a day would equate to (roughly) 1495 lines to 1610 lines per day.

Let's say you average 135 minutes a day.  That would be about 1553 lines a day or 194 lines an hour.  At the current hourly rate you earn of $23 an hour, it would equal approximately 0.12 per line...which is very, very good--especially considering you probably get benefits on top of that.



Does anyone know what the estimated total # of MTs in the US is? nm
Don't worry about estimated
Look at your last years taxes add in $3600 (minues any deductions) figure 15% for at least SS on your NET amount and see if you withheld enough from you and your husband.  If you received a refund - you are probably fine.  If you used Turbo Tax or any of those programs you can do a projected estimated income for next year which  takes off your deductions, etc.  You can always have an extra $25 to $50 per pay period taken out of your employee position.  The IRS does not care what source the money comes from as long as the taxes are paid, they put ALL your and your husband's income into one combined income and you are taxed on that amount.  And, $3600 won't add on that much except for the Social Security that you will pay the 15% on and again, it is all paid to the IRS and so if you overwithold from your employee position they don't care as long as they get their money.  
Estimated downtime for hernia surgery?
I have a large ventral hernia that needs repair and am trying to determine how much I have to save to see me through the disability period...have any MTs had similar procedures who could tell me approximately how long you were not able to work?  Thanks for any input. 
My UPS has an estimated battery time of 19 minutes
which gives me enough power to finish the report I'm working on and shut down my computer correctly.
my full retirement age is 67 according to my estimated benefits paper - nm
You have your W2 showing very clearly those taxes were paid. MQ is responsible for those taxes
because you were a statutory employee. That is the responsibility of the employer to pay those just as though you were an employee.
What are you paying your MTs? If you're only paying 7 or 8 cpl

and expecting extremely experienced MTs, forget it. You're not going to get it.  If, however, you're willing to pay 9 or more cpl then you will find what you're looking for. There ARE experienced MTs out there who will work their fingers to the bone IF they are compensated well and treated with respect.

ATT- I was paying $320 for 7000 minutes, I am now paying $175 for 5000 minutes in CA. nm
I don't pay quarterly.
I pay my taxes at the end of the year when I file. 

I have been an IC for 16 years now but was married before and so had my husband overwithold.   Then the last couple of years held a part-time in-house position and so overpaid that way.  But this year will probably keep an eye on things and see what my taxes will be after about June and if it is bad, will make a payment then.  I will have a lot of deductions this coming year - 2007 - so that will help.  When I do my 2006 taxes I will just see what I owe and go from there.  If it is easier to send in $400 four times a year instead of April 15th, will do that.  I have never had to pay that much in penalities when I did not do quarterlies that it bothered me.  


MQ quarterly bonus
Yes, MQ does still pay quarterly bonuses to their SEs.  We earn $50 for each pay period we produce 10,000 lines and another $10 per 1000 lines after that. 
quarterly bonus
Do you still get quarterly bonuses as an SE with the new incentive plan and how is it now going for you?
quarterly bonus
Do you still get the quarterly bonus for the SE incentive program and how is it going for you?
When is MQ getting rid of the quarterly bonuses? SM
Does it start before or after the OCT bonus?
Your first year you don't have to pay quarterly...sm
but of course, you better be setting the money aside. It's the second year where the government will ask you to pay quarterly. You only have to pay 100% of what you paid the year before in your quarterly payments. Ex: in 2006, you start your first year as an IC. You earn $25,000. Your taxes are $5000 which you pay as a lump sum on April 15th, 2007. In 2007, you pay your first quarterly installment on April 15, 2007 of $1250, with equal payments of $1250 at the next three payment due dates. At the end of 2007, you realize you made $45,000. It is not a problem that you only withheld taxes for the $25,000 amount. You will just make up the difference when you file your taxes for 2007 in 2008.  Note: "bump up" your payment amount a little bit to make sure you clear the 100%, i.e. pay $1300 a quarter.
don't need to pay quarterly the first year...sm
the IRS determines you should be a quarterly payer when you file your taxes and show you have no withholding from your job. The  next year you file quarterly but only have to pay 100% of what you made the year before, no matter how much you make or don't make this year. Ex:  You being working as an IC this year 2006. You don't pay quarterly but when you file your taxes in April of 2007 for tax year 2006 you realize you made $10,000 and you owe $2500 in taxes for earnings in 2006. In the year 2007, you will need to make four equal quarterly payments equalling $2500, i.e. $625 (but round up a bit to $650). Your first quarterly payment is due April 15, 2007.
pay quarterly or withhold...sm

Last August, I was dropped from employee status to IC.  I don't know of anyone else in my area that works from home as I do so I have a question for any of you that are IC's.  When you file taxes you get a 1099 form from the work site, do you keep out money in a separate account for your taxes the following year or do you pay in throughout the year? 

So in August of 2005, you went to IC status. You will owe income taxes including self employment taxes on everything from August on. By April 15, your tax man will have figured out what you need to pay. By April 15, this year you need to either start a) filing quarterly or b) increasing husband's withholding so that all your taxes paid for 2006 are equal to or greater than what you owed in 2005. For example, say in 2005, you made $10,000 as an IC and say you owed $2500 in taxes. Your husband made $40,000 and owed $8000 in taxes. In 2006, you would need to have $10500 withheld from his checks or a combination of his checks and your quarterly filings. And don't go into you pay more taxes as an IC than an employee. We've had that discussion up and down these boards these past two weeks. Don't even go there.

quarterly, now I just pay it all in April...nm
I take out 35% of each check and pay quarterly. nm
Quarterly pymts
You can print the forms off through the IRS web page, send for them or if you use Turbo Tax they print them for you if you need them.  As long as you have your cancelled checks you should be fine and send them in with a form and your SSN.
Just as above. It's part of what you pay quarterly.
When you're an employee, your employer pays 7.5 and you pay 7.5. When you're self-employed you pay the whole 15%. Also, you should be making estimated quarterly payments to avoid a penalty.
Quarterly Tax question
I pay my taxes when I file on April 15 or August 15 if I get an extension. I have a bookkeeping service that does my taxes and you don't have a choice but to pay into social security - i don't know how you have gotten around it. I would be interested to know, though.
The IRS will probably penalize you if you DON'T pay quarterly.
The first year it's usually tough to know what your quarterly payments should be; however, after that, the IRS will send you quarterly payment coupons so you're not the one to determine how often you pay--the IRS makes sure of that.
You pay them quarterly. You can download
forms from IRS website.   If you have a spouse you can have extra taken from their check instead of paying quarterly. 
You can do quarterly or not-- depends on what you want - sm
to do. I did quarterly at first but then said forget this, no point as my DH always had extra taken out of his paycheck, so why pay them then get a big refund, not too bright. So now as I I make more and have less write offs I actually owed in 2006, no penalties (refund year before), and in 2007 we also got a refund...had more write offs. I also started a very PT job with my kid's school and now have an extra $100 a month taken out of that to cover my butt for SE taxes. So I get out some, have my taxes taken care of at the same time and get a little extra on top of my MT money. My taxes generally come to 10% of my income, after a joint return, 2 kids, kid tax credit, standard deductions (cannot itemize anymore, not enough). So shooting for a refund, not too big but with enough cushion in case my income actually goes up.