Figuring estimated quarterly taxes...

It's not a good idea to take things here as gospel because everyone's situation is different. I own more than one piece of RE for instance, so that's gonna make a difference. All comes down to what your nett is going to be.
A friend of mine who drives the same kind if configuration as in tanker/hazmat O/O has to pay $15,000 but that's him.
You just have to keep your finger on the pulse and constantly talk with your accountant. He can be very accurate at assessing where you're at, and give you pointers. After all, he's doing it every day. He's your wingman on this topic.

 

Quarterly taxes ... meh. My underpayment fine was only $13 ... do my taxes once a year. No need to mess with them more than that.

 

I did taxes this year for a company that specializes in Truckers, and they are close with their est taxes.... about 50% of the time. It is hard to know exactly what you will owe, so don't sweat it. I did taxes for this one trucker who set his money aside in his savings and paid the taxes when due, April 15th. Owed about $8,000, had it savings so he was set.

As Mystic HZ stated below, he paid a fine, but it was small compared to not having this money around if an emergency occurs. What I have found for an OO who will net around $30 to $40,000 (that is net of expenses not including Per Diem! that comes to around $9,000) and doesn't own a house (using standard deduction) use 5% of Gross sales or revenue. ie: Gross pay on 1099 shows $125,000 multiply this by 5% comes to $6,250. Divide this by 4 for quarterly estimate of $1,562. Won't be exact, but it never will be.... it's an estimate. Put this aside each quarter in a savings account or just pay IRS at least this amount, you should be good to go. If it is short by 10% you will pay a small penalty, but it won't break the bank, just pay it by April 15th!!!!

Main point is to treat TAXES as one of your operating expenses and put it aside each month or at least each quarter. 5% of gross sales each month in a savings account at your bank, or cash under your mattress this will help you at tax time. Can't tell you how many folks I did taxes for that did not pay any est taxes or put this money aside and found they owed $5,000 to $8,000 tax time, they sh&t their paints when I tell them what they owe. One thing to remember... it is good to be able to pay taxes.... means you are making money$$$$$!!!!

Hope this helps!


MysticHZ

Quarterly taxes ... meh. My underpayment fine was only $13 ... do my taxes once ​

 

This is probably the most helpful : http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Estimated-Taxes

Quarterly taxes are one of the most frequent causes for cash flow panic that we see. It's good to get it figured out and always be setting aside a percentage for them.

Another recommendation is for a book - Understanding Your Financial Statements by Jim Schell. Super helpful, short, basic outline of how to put together your financial reports so they are useful not just for filing taxes, but for planning for your business.

 

Is that a typo or is 13,000 the actual net from the 87k gross? If so how in the world did u manage those cuts from ur afjusted taxable income???? Awesome.

 

This^ for such a low penalty I make the gooberment wait for their money.. they are just gonna pess it away anyway, maybe the food stamps and welfare checks will be late also.. lol

 

He said farming. Most that would see $87k gross would be negative $20k.

 

I paid a 1.25% penalty on taxes owed for not paying my first year quarterly. After that first year you can just base your estimated off that.