Can you make income tax "pre-payments"?
 

Like most of you here I get checks several times a week. I am not the best when it comes to putting money back and was wondering if you can make regular payments to the IRS that would go towards your tax bill at the end of the year?

Also, if they allow this can you get a return for overpayment when filing a 1099?

If anyone knows where some documents on this are it would be much appreciated. Thanks.

YEah you can do that, as amatter of fact I am a IRS affiliate. You can send me the checks monthly and Ill take care of it. Email me for the address

setup an ing account and transfer that money into it. much better to collect 2-3% on your money then letting the government collect the interest.

They would be happy to hold your money, interest free, and then give you a refund when you file your taxes.

Yes they allow it because they make profit from your money while it sits in their bank account all year. You would be better off just setting aside money each month and depositing it into a savings account specifically for your taxes. :2 cents:

:thumbsup

Fuck I love you man. Everything you say is PURE EVIL.

[email protected]?

It's called paying your taxes quarterly

I want to pay weekly, or daily, or whenever I feel like it. I spend the shit out of money and so does my wife. :winkwink:

i am paying taxes quarterly...does that help?

Arent you required to pay taxes quarterly if you think you will owe more than 1000 dollars at the end of the year?

There is quite a large tax penalty for having to pay over 1000 dollars at the end of the year.

Why let the IRS borrow your money and make the interest on it?! :disgust

If you really need to tuck it away weekly, put it in a money market account (Ingdirect is paying 2.2% - not much but it's better than zero) and earn some money on it before you send it to the IRS every quarter! :thumbsup

Quarterly payments are the way to go. ANY accountant could get you going in no time. That'd probably be the way to go. I'm not sure of any other way to do it on a weekly basis. Perhaps you could ask an accountant that question.

Ya, pay quarterly and deposit money towards it in an income earning acct.

When a Penalty Is Applied
In some cases, you may owe a penalty when you file your
return. The penalty is imposed on each underpayment for the
number of days it remains unpaid. A penalty may be applied if
you did not pay enough estimated tax for the year or you did not
make the payments on time or in the required amount. A penalty
may apply even if you have an overpayment on your tax return.
The penalty may be waived under certain conditions. See Pub.
505 for details.
advance EIC payments made to your employee(s)) on line 12 if:
. You will have Federal income tax withheld from wages,
pensions, annuities, gambling winnings, or other income or
. You would be required to make estimated tax payments (to
avoid a penalty) even if you did not include household
employment taxes when figuring your estimated tax.


here is the link for all of the instructions and paperwork.

http://www.irs.gov/pub/irs-pdf/f1040e02.pdf

have fun....

Geez, the ignorance here about this is astounding. If you are self employed you are REQUIRED to pre pay (quarterly). If you dont even know this much you need to have an accountant handle everything for you. Or you can just pay a lot more later, up to you.

Even though it's illegal as Hell...

Taxes are due at the end of a taxable year, yet they say you're 'required' to pay some of those taxes before they are due..

Typical IRS interpretations of codes they helped to keep confusing..

I have a high interest saving account where all my tax money sits.

my accountant estimates my tax owing on the revenue earned each month in his monthly report, and the tax money is put in that account (might as well gain some interest on the money you set aside for the government). i've always had to pay out taxes quarterly (except for the first 2 years i was in the biz)... though i'm in Canada - not sure how quarterly payments work in the US.