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August 28, 2024
Question

Quarterly taxes

  • August 28, 2024
  • 1 reply
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If I'm running a business that brings in less than $5K a year do I have to pay quarterly taxes?

    1 reply

    August 28, 2024

    Hello KW

     

    Here are questions to answer for determining whether or not you need to make quarterly tax payments:

     

    1. Will you owe less than $1,000 in taxes for the tax year after subtracting your federal income tax withholding from the total amount of tax you expect to owe this year? 
    2. Do you expect your federal income tax withholding to amount to at least 90 percent of the total tax that you will owe for this tax year?
    3. Do you expect that your income tax withholding will be at least 100 percent of the total tax on your previous year's return? 

    If you answer no to all these questions, then you must make quarterly tax payments.

    KWMaloneAuthor
    August 28, 2024

    I don't even know how to answer these questions. How do I know what my federal income tax withholding will be? Last year I had a federal refund, if that helps.