taxes

can i send it in each month?

[StuntasticAudi]

I only made $2k with google in 2005 as i started in November. But after 2006 is over it's going to be couple thousands of dollars and i hate to be hit with a huge amount to pay for taxes. Can I pay to IRS monthy instead so at the end of the year i'm not hit with couple grand for my taxes.

[europeforvisitors]

You can file estimated taxes. See the IRS Web site for details, or let your tax software (TurboTax, TaxCut, etc.) figure it out for you.

[bobothecat]

[irs.gov...]

[LifeinAsia]

You should definitely be paying quarterly estimates. Otherwise, your bit hit for taxes each year will include a big penalty for underpayment.

[jetteroheller]

Do not forget all Your business expenses.

Remember, the company is poor, the company pays everything.

[ezgo]

You should definitely be paying quarterly estimates. Otherwise, your bit hit for taxes each year will include a big penalty for underpayment

That is the IRS.
When it withholds the tax from our paycheck, if we can receive big tax return on the withhold tax, why IRS never considers about it should pay us interest on that. sigh....

[LifeinAsia]

Do you know of any government that pays interest on withheld taxes?

if we can receive big tax return on the withhold tax

That's why it's stupid to withhold too much money to get a big refund each year. I'm still amazed at the number of people who get thrilled about their big refunds year after year. The best "refund" each year is having to pay an amount just below the threshold where a penalty kicks in.

I know many people who do the over-withholding because they claim they don't know how to save. Well duh! Just decrease your withholding $X each pay period and immediately put that amount into an interest bearing account that you can't touch until just before April 15th. (That way, even if you miscalculated and have to pay some money to the IRS, you can tap into that.)

[andrea99]

It is simply that most people sadly lack the discipline to save for the inevitable tax day. Withholding and estimated tax payments were invented because so many went delinquent the day taxes were due.

Government is a necessary evil and taxes are its evil necessity. If they paid interest on withheld taxes they would just have to raise the rates because it wouldn't change their spending habits.

[percentages]

In 13 years I have claimed a refund once....for $13. In all other years I have written the IRS a check, will be doing that again this year.

The year I claimed a refund was an odd year, a new IRA, and loses in Las Vegas assisted the problem!

You should never claim a refund, you should always need to write a check. You should always have the money set aside in an interest bearing account to pay the IRS at the end of year.

Avoiding penalties is a must, as the penalties are not friendly. Pay quarterly the amount that is justified to avoid penalties. Pay the rest on the last day possible.

Never pay monthly, for one the time it takes to do so is an unnecessary waste of time!

If the IRS adopted a discount for paying early I would like it (a bit like country real estate taxes), until that day keep as much of your own money as you can without incurring penalties.