Forms
1. Pay estimated state and federal tax using form 1040 ES for fed, IT-1040ES (ohio) for state every quarter .
Fed: http://www.irs.gov/pub/irs-pdf/f1040es.pdf
State: http://turbotax.intuit.com/support/kb/estimated-taxes/2000.html
OH 1040Es voucher : http://tax.ohio.gov/documents/forms/pass-through_entities/2007/PIT_IT1040ES.pdf
Medicare and social security tax is included in 1040 ES.
2. You can Pay medicare and social security tax using form 1040 SE while filiing your tax return.
http://www.irs.gov/pub/irs-pdf/f1040sse.pdf
3. + Other forms while filiing your tax return.
Tax due date for 1040 ES (fed and state of OH, other state due date may vary with fed)
The 15th day of the 4th month of your fiscal year, - April 15
The 15th day of the 6th month of your fiscal year, - June 15
The 15th day of the 9th month of your fiscal year, - Sept. 15
The 15th day of the 1st month after the end of your fiscal year. - Jan. 15 next year
How To Pay Estimated Tax
There are five ways to pay estimated tax.
1. Credit an overpayment on your 2007 return to your 2008 estimated tax.
2. Send in your payment (check or money order) with a payment voucher from Form 1040-ES.
3. Pay electronically using the Electronic Federal Tax Payment System (EFTPS).
4. Pay by electronic funds withdrawal if you are filing Form 1040 or Form 1040A electronically.
5. Pay by credit card using a pay-by-phone system or the Internet
Source : http://www.irs.gov/publications/p505/ch02.html#d0e6025
Friday, March 28, 2008
Due date to pay quarterly estimated tax for 1099 contractors
The 15th day of the 4th month of your fiscal year,
The 15th day of the 6th month of your fiscal year,
The 15th day of the 9th month of your fiscal year, and
The 15th day of the 1st month after the end of your fiscal year
Source : http://www.irs.gov/publications/p505/ch02.html#d0e6025
The 15th day of the 6th month of your fiscal year,
The 15th day of the 9th month of your fiscal year, and
The 15th day of the 1st month after the end of your fiscal year
Source : http://www.irs.gov/publications/p505/ch02.html#d0e6025
Estimated Tax Payments: How to Determine What You Pay and When
How can I figure out if I must pay estimated taxes, and, if so, how much will I owe?
if you're an employee, your employer withholds taxes from every paycheck and sends the money to the IRS and possibly to your state government as well. This way you pay your income taxes as you go. And, if you're like most wage earners, you get a nice refund at tax time.
But if you are self employed, or if you have income other than your salary, you may need to pay estimated taxes each quarter to square your tax bill with Uncle Sam. You may owe estimated taxes if you receive income that isn't subject to withholding, such as:
Interest income
Dividends
Gains from sales of stock or other assets
Earnings from a business
Alimony
More info at : http://turbotax.intuit.com/tax-tools/determining_estimated_tax_payments/small-biz-article
if you're an employee, your employer withholds taxes from every paycheck and sends the money to the IRS and possibly to your state government as well. This way you pay your income taxes as you go. And, if you're like most wage earners, you get a nice refund at tax time.
But if you are self employed, or if you have income other than your salary, you may need to pay estimated taxes each quarter to square your tax bill with Uncle Sam. You may owe estimated taxes if you receive income that isn't subject to withholding, such as:
Interest income
Dividends
Gains from sales of stock or other assets
Earnings from a business
Alimony
More info at : http://turbotax.intuit.com/tax-tools/determining_estimated_tax_payments/small-biz-article
I am self-employed. How do I report my income and how do I pay Medicare and social security taxes?
Tax for 1099 contractors
Unless you think you were an employee, you report your nonemployee compensation on Form 1040, Schedule C (PDF), Profit or Loss from Business (Sole Proprietorship), or Form 1040, Schedule C-EZ (PDF), Net Profit from Business. You also need to complete Form 1040, Schedule SE (PDF), Self-Employment Tax, and pay self-employment tax on your net earnings from self-employment, if you had net earnings from self-employment of $400 or more. This is the manner by which self-employed persons pay into the Social Security and Medicare trust funds. Employees pay into the Social Security and Medicare trust funds , as well as income tax withholding, through deductions from their paychecks. Generally, there are no tax withholding on self-employment income. However, you may be subject to the requirement to make quarterly estimated tax payments. If you did not make estimated tax payments, you may be charged a penalty for underpayment of estimated tax penalty
Source : http://www.irs.gov/faqs/faq4-3.html
Unless you think you were an employee, you report your nonemployee compensation on Form 1040, Schedule C (PDF), Profit or Loss from Business (Sole Proprietorship), or Form 1040, Schedule C-EZ (PDF), Net Profit from Business. You also need to complete Form 1040, Schedule SE (PDF), Self-Employment Tax, and pay self-employment tax on your net earnings from self-employment, if you had net earnings from self-employment of $400 or more. This is the manner by which self-employed persons pay into the Social Security and Medicare trust funds. Employees pay into the Social Security and Medicare trust funds , as well as income tax withholding, through deductions from their paychecks. Generally, there are no tax withholding on self-employment income. However, you may be subject to the requirement to make quarterly estimated tax payments. If you did not make estimated tax payments, you may be charged a penalty for underpayment of estimated tax penalty
Source : http://www.irs.gov/faqs/faq4-3.html
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