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Just designate it on your tax form as a 1099 that you have received so that it doesn't get flagged when the 1099 does come in.
I need it to send my tax return before Jan 31. Without it, how can I file my tax return? I am sending my 1040ES with year end tax return. The deadline is Jan 31.
Obviously you've already missed the Jan 15th Estimated Tax payment now, but if that the only one you are late on.. the underpayment penalty will be minisulce in relation to your taxes if you get it filed when you get your 1099s. Not really that big of a deal if you miss that Jan 31st deadline.... you'll obviously get a bill for being late, but it will be pretty small in relation to your taxes.
FWIW, the underpayment penalty for not paying quarterly payments in roughly a 5% annual rate from the time each payment is late, which results in a lil over a 3% penalty for your total tax (based on '04 rates.. Pub 505 hasn;t been updated for the '05 year iirc).
Numerous folks knowingly/willing do not pay estimated payments becuase they can almost alway earn more by holding onto it until April, than what their penalty will be.
Obviously, the IRS is not one to be messed with, but not paying quarterly isn't that taboo, and isn't something that results in someone knocking on your door (that is, as long as you file your complete return by the Apr deadline, and promptly pay the underpayment penalty when that bill arrives in the mail).
And for those figuring their taxes before they get their 1099, your AdSense income for '05 is based on payment dates, not earning dates.
- '05 tax year is earnings made from Dec'04 - Nov'05... which result in payments of Jan-Dec.
Other question, how do you decide the amount of quarterly ES, based on last year's adsense income or earning of the current quarter?
Hmmm... so you haven't sent any quarterly payments at all thus far? The Jan 15th payment is the last of the four for '05. If you didn't send in the previous three, I would probably not send in the last as well... but file your complete return as soon as you can. Sending in the Jan 15th payment or filing your complete return by the 31st only avoids the penalty on the last payment... your still going to have penalties on the first three payments.
See a tax advisor.
Remember, this is an AdSense board... and while many people may be experienced with this & that when it comes to taxes, and may offers solid advice, you are better off heading to a tax advisor, as each situation can be, and probably is, different.
As far as how to figure out your quarterly payments, there is a worksheet that lays it out for you with 1040ES. The Jan 15th estimated payment would be your esitmated taxes on earnings from Oct 1-Dec 31.
Since you are asking how to figure it out, I'm just assuming you haven't done it before. That would mean you missed the previous three payments, or that your income was small enough to avoid the first three. Again, your best bet is to see a tax pro for advice.. make sure to at least check out 2210 to make sure the penalty is figured out correctly, instead of letting the IRS figure it out for you.
Going about it all yourself, especially in the early years of self-employment when you may not be aware of all the ins & outs, you can miss out on some solid deductions that you may not even have thought about.... see a tax advisor. Once they open the door to self-employment taxes, they also open the door to all kinds of deductions... especially when your business is your websites. Going on vacation this year... start a travel site & deduct a percentage of your trip as business expense/research.
If I'm correct about your situation, your are going to have to pay about 4%-5% of your total taxes in penalties, but if you go see a tax advisor, you maybe able to save more than that through various deductions, and other things you might not have been aware of.
joined:Dec 10, 2005
Without it, how can I file my tax return?
Which 1099 do they send, do you know? This is the first year I've had income from this source, and I have to file tomorrow too.
It's just a regular 1099, like any other 1099 you get. You don't need the form from google to start your taxes, just log in and view your earnings for last year. That's the amount that will be on the 1099 they send... do your taxes, I'm working on mine, no sense worrying for the form from google(kind of a tongue twister).
Are they the earnings from 12/1/2004 to 11/30/2005 (that were paid in 2005) or the earnings from 1/1/2005 to 12/31/2005?
What if you had payments held in previous years or at the end of this past year?
What if you're not on the same calendar year as Google?
What if you earned less than $600? Google isn't required to send a 1099, will they?
Perhaps one needs to look at the Payment History and not the earnings instead.
Taking a guess and plugging it into a tax return is just risking having to file an amendment, and/or a letter audit if the numbers don't match to the dollar.
Anne -- nothing from Amazon for me, either.
Oh well, better than taking a chance on guessing my total income, filing now, and getting an audit from the IRS.
joined:Dec 10, 2005
It's just a regular 1099, like any other 1099 you get.
For more fun, download the 89-page .PDF file from the IRS. :)
File for an automatic four-month extension today, guesstimating your income, and making a guesstimated payment.
Anyway, that's why I suggested filing the extension and sending in a payment with it. That should be the equiuvalent of filing the full return with a payment, in terms of avoiding penalties... (just for the foruth quarter estimated payment, not all four).
However, according to publication 505:
January payment. If you file your 2005 Form 1040 or Form 1040A by January 31, 2006, and pay the rest of the tax you owe, you do not need to make the payment due on January 15, 2006.Since he's missed the 1/15 deadline maybe the extension request with payment won't work. Back to the original plan, filing by 1/31 to avoid the penalty.
If I had to guess what the 1099 would have on it, I'd guess that it's the monies paid in 2005, so look on the payment history screen.
If you get it "close but no cigar" and have to file an amended return, if you've underpaid the penalities for underpayment will be pretty small. (A penalty for an error on the FINAL return incurs a much higher penalty.) If you over guess, ther will be no panlty, but the IRS won't give you a bonus either :D .
...but I could be wrong, I guess.
Those aren't reflected in the earnings reports, but ARE reflected in the payments.
Mail carrier was here already today, no 1099 yet. It's the 31st already. I hope G has'em in the mail.
""January payment. If you file your 2005 Form 1040 or Form 1040A by January 31, 2006, and pay the rest of the tax you owe, you do not need to make the payment due on January 15, 2006.""
Since he's missed the 1/15 deadline maybe the extension request with payment won't work. Back to the original plan, filing by 1/31 to avoid the penalty.
Filing by the 31st only avoids the penalty on the last (Jan 15th) payment. Penalties will still be assessed the other 3 estimated payments if they were not made.
If those other payments weren't made, penalties are inevitable, and you may as well wait until you have all your documents... a few extra days of penalties on a $10k tax bill is litterally going to be under $50. Yeah, extra money sent to Uncle Sam, but a small amount in relation to your overall taxes. IMHO, it's such a small amount that doesn't necessarily warrant a frantic rush to get them done, which could result in mistakes on your filing.
The deadline to send the 1099 to the recipient is January 31st.
When to furnish forms or statements. Generally, you must furnish forms 1098, 1099, and W-2G information by January 31, 2006.
irs dot gov /pub/irs-pdr/i1099.pdf
Section 8, beginning on page GEN-10, text found on page GEN-11.