My estimated taxes are less than $1,000. Do I need to pay quarterly taxes?

Forum|Forum|7 years ago
June 1, 2019
1 reply
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In 2015, I started my business, and it only made about $250 in net income.

This year it's made about $1,100. Quickbooks Self-Employed says I owe $40 estimated for this quarter's taxes, and gives estimates for the prior quarters of 2016 as well.

But I've read that these aren't required if the total estimated tax is less than $1,000. Is this correct?

So should I:

Pay the $40 it estimates for Q4 2016,
Pay the $174 it estimates for the entire year,
Not pay it at all since it is less than $1,000?

TurboTax Self Employed Online

ScruffyCurmudgeon

Employee

The question specifically: If the total Estimted Taxes are less than $1,000, do you have an obligation nevertheless to make Estimated Tax payments instead of simply paying the unpaid balance with your tax filing?

ANSWER: If your total, as yet, unpaid tax obligation will be less than $1,000, after all withholding payments from wages and salary or other withholding are applied, and any prior year overpayment is applied, then you are not obligated to make an Estimated Tax payment but of course must fully pay taxes owed by the filing deadline of April 15th.

If this posted response is useful to you, please click on the upraised hand in the lower left of this post. Thank you. Scruffy Curmudgeon--PFFM/ IAFF, retired FireFighter/Paramedic - Locals 718/30, Veteran USAR O3 AIS/ASA '65-'67 NOT INTUIT EMPLOYEE USAR 64-67 AIS/ASA MOS 9301 - O3 - Just donating my time**Say Thanks by clicking the thumb icon in the lower left corner -it means nothing but makes those than answer feel wanted.