Quote:
Originally Posted by elnrgby
I am not an investor, but I used to be self-employed, and I used to pay ES taxes, generally all at once in early April, in the amount of 110% of my last year's tax; I continue doing the same in retirement (my taxes are now very low compared with what I paid when I worked). I don't know whether investing the tax money and paying penalty for non-payment of ES tax is better or not.
But my point was that your ES tax liability is just 110% of your last year's tax. Any tax above that you can pay with your next tax return (there is no penalty of any kind for that).
|
I have been doing the "Pay no estimated, pay penalty" for many years. It always benefits me. I just let the IRS compute the penalty. The way I do things, that way also benefits me.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
