argh <timnels@gmail.com> wrote:

Started an ebay business, do I need to pay estimated taxes as I
have no idea how much I will make each quarter. Thanks.

It's called "estimated" taxes. Each quarter you determine what you
think an appropriate payment would be. The object is to pay enough so
that you don't owe more than $1,000 on April 15. The last quarterly
payment is due January 15 of the following year. So if you have been
keeping track, you can make up any shortfall at that time.


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Stu
http://DownToEarthLawyer.com


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Started an ebay business, do I need to pay estimated taxes as I have no idea how much I will make each quarter. Thanks.

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It appears that argh <timnels@gmail.com> said:

Started an ebay business, do I need to pay estimated taxes as I have no idea how much I will make each quarter. Thanks.

At the end of each quarter, figure out your annualized income based on
how much you've made so far and pay estimates based on that.

If your income goes up later in the year, use form 2210 when you file your taxes
to explain the uneven estimated payments.

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On Saturday, April 8, 2023 at 1:40:27 PM UTC-4, Stuart O. Bronstein wrote:

argh <tim...@gmail.com> wrote:

Started an ebay business, do I need to pay estimated taxes as I
have no idea how much I will make each quarter. Thanks.

It's called "estimated" taxes. Each quarter you determine what you
think an appropriate payment would be. The object is to pay enough so
that you don't owe more than $1,000 on April 15. The last quarterly
payment is due January 15 of the following year. So if you have been
keeping track, you can make up any shortfall at that time.

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Stu
http://DownToEarthLawyer.com

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I agree with Stu. You can go to irs.gov and either:

1. there is a button on the main page, to the effect of pay my taxes where you tell IRS you want to pay estimated taxes for (example) Form 1040, which year, name, address, SSN, $$, how to pay (debit bank account, credit card for examples), or

2. go to Forms and Publications, select Estimated Taxes, Form 1040-ES, select year, fill in similar info, print, address envelop, insert form and check, stamp and mail.

Understand that there may be a timeliness element, in some circumstances such as an audit. In general, income, net of allowable deductions and exemptions, estimate income and self-employment tax by calendar quarter, could produce a calculation of your
estimated tax due:
1. January, February, and March by April 15 (this year Ap. 18);
2. April, May, and June by June 15 (Not July 15);
3. July, August, Sept by Sept. 15;
4. As Stu stated, Oct., Nov, Dec., by Jan. 15.

Are we having fun yet?

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On Sat, 8 Apr 2023 13:36:54 EDT, Stuart O. Bronstein wrote:

argh <timnels@gmail.com> wrote:

Started an ebay business, do I need to pay estimated taxes as I
have no idea how much I will make each quarter. Thanks.

It's called "estimated" taxes. Each quarter you determine what you
think an appropriate payment would be. The object is to pay enough so
that you don't owe more than $1,000 on April 15. The last quarterly
payment is due January 15 of the following year. So if you have been
keeping track, you can make up any shortfall at that time.

And if your income is low in the first part of the year and high in
the second part of the year, so that your first payment turns out to
be quite a bit below 1/4 of the total tax, you can file form 2210
next April with your 2023 tax return and probably avoid a penalty.

Finally, if you also have a regular job, you can avoid paying
estimated taxes by simply having your withholding increased. A nice
feature of doing it that way is that, unlike estimated tax payments,
all that matters is the total withheld during the year, not the
timing of the withholding.

--
Stan Brown, Tehachapi, California, USA https://BrownMath.com/
Shikata ga nai...

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On 4/8/2023 10:21 AM, argh wrote:

Started an ebay business, do I need to pay estimated taxes as I have no idea how much I will make each quarter. Thanks.

Good comments from all the others.

Will the safe harbor based on last year's tax liability help in both the
first and/or subsequent years of this business?

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On Monday, April 10, 2023 at 12:18:05 PM UTC-4, Taxed and Spent wrote:

On 4/8/2023 10:21 AM, argh wrote:

Started an ebay business, do I need to pay estimated taxes as I have no idea how much I will make each quarter. Thanks.

Good comments from all the others.

Will the safe harbor based on last year's tax liability help in both the first and/or subsequent years of this business?
--

A safe harbor is just that - it can be used for any set of circumstances.

Ira Smilovitz, EA
Leonia, NJ

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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
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<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
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