Quarterly Taxes

[dbroth]

Hey,

I just finished my 2012 taxes and know that I owe ~$850. For 2013 though I have already done over $70,000 in 1099-misc income (only around $19,000 profit after expenses), But regardless I know I will be owing over $1000 in taxes in 2013.

So my question is, do I need to start filing quarterly taxes? And how do I estimate them? based off of what I read it's supposed to be 4 equal payments? My income varies each month so that would be almost impossible to estimate right. I also read that if I wasn't required to do quarterlies in 2012 then I don't have to do it in 2013. Does that mean I'm exempt from the 1st year and then I would start doing them next year?

Also, can quarterlies be filed electronically? Is there a program like turbo tax etc that can help me fill out and e-file the 1040-es form?

I'm pretty clueless at this point as you can see.

any help will be greatly appreciated.

Thanks!

 

[accounting nerd]

There are programs that can walk you through the quarterly filings. I would look into advanced Turbo Tax or H&R Block software to help you estimate your quarterly payments.

 

[The Finance Writer]

When you write that you "owe" about $850 for 2012, do you mean that is your total tax liability for the year? If so, you don't need to make estimated tax payments for 2013. No penalty is assessed on amounts less than $1,000. Moreover, the safe harbor for paying sufficient estimated tax payments this year is paying 100% of last year's tax liability. Follow that formula for payments in 2014 -- divide your 2013 tax liability into four equal payments. (BTW, you may need to use 110% if your income gets into six figures.) You can pay estimated tax payments online.