Paying IRS $5200-$9600

If 100k of profit is being shown on a schedule C, I hope more than $800 a month or $3,200 a quarter is being sent in or set aside for feds and state.

 

As company drivers married team, we each put 175 to the state and uncle sam weekly. Before any pay is written to the check and after basic withholding on 0 dependants. The company pays that money directly out. Even if we had 0.00 for the week, the money is paid. We still have savings to use if that is the case.

The result is quite a bit coming back tax time around march of the following year that forms a foundation of a new trucking year savings worth months of operations, including basic house bills.

We write annual check to say the town water authroity for enough to cover 12 to 18 months. They can pipe and deduct for that long carrying the remaining balance or park oh... 40,000 gallons in tanker trucks for us to draw on. Either way we are paid up. No bills to the house, no one will be there to pay. We are too busy trucking.

As opposed to being constantly borrowing money, scraping to meet IRS etc or trying to catch up on past due bills it's pretty good. Bank interest on deposits has been #### since Obama Years. Pays what? 0.08% maybe a little bit closer to .70 by now? Bleah. zero is zero.

Im not here to be difficult. Tax time for us the last 20 years is very simple. There are thousands sitting in Uncle Sam's pocket and in Arkansas's pocket. How much we break even with the state and how much we get back minus 250 to the block is a pretty good position to be in.

Before that we stressed about how much we will owe and how we are going to find it. No. Enough of that. The Uncle Sam smiles at us when it's time to take his taxes and give us back the rest. No more smiling at him hoping to scrape it together by april .

 

There is a small fine for not paying quarterly Federal taxes, however the fine from the state might be pretty big, depending where you live

 

Throwing away receipts is the big red flag, not what he’s doing by sending in money each month. Maybe he doesn’t trust himself to have that money each quarter. One entity you do NOT want to get cross ways with is the IRS.

I’d just leave him be and not worry about it. End of the day who cares?

Ps. You pay quarterlies every 4 months? I’ll admit my wife sends ours in but wouldn’t it be every 3 months?

 

They can charge you penalty and interest for the quarters. And they will.

I fully understand your dilemma. You don't want to part with the money in case you have a big repair or other expense during the year.

They are actually estimated payments.

Voucher ES.

As long as you can right that lump check come February, it shouldn't matter much.

 

Just send one like this.

 

Year. No estimate. To the penny.