Dismiss Notice
Hey Texans—join us for a DFW meetup! Click here to learn more.

Paying estimated taxes as independent contractor

Discussion in 'Optometry' started by heretic, Dec 5, 2008.

  1. heretic

    heretic Member
    5+ Year Member

    Joined:
    Dec 4, 2004
    Messages:
    49
    Likes Received:
    0
    Status:
    Optometrist
    Question for the independent contractors among us. I graduated last May and have been working as an independent contractor since Sept. Do you have to pay estimated taxes on your earnings this year if you had an income of zero last year and paid no federal taxes?
     
  2. Note: SDN Members do not see this ad.

  3. KHE

    KHE Senior Member
    Optometrist SDN Advisor 10+ Year Member

    Joined:
    Jun 14, 2005
    Messages:
    3,317
    Likes Received:
    302
    Status:
    Optometrist
    An easy way to calculate your estimated taxes: Go to the IRS Web site, download form 1040-ES, “Estimated Tax for Individuals,” and complete the worksheet to figure out the minimum you must pay to avoid a penalty.
     
  4. IamMDMBA

    Removed

    Joined:
    Nov 23, 2008
    Messages:
    27
    Likes Received:
    0
    If you had no tax liability last year, you DO NOT have to pay estimated taxes this year.
     
  5. Ryan_eyeball

    Ryan_eyeball Senior Member
    10+ Year Member

    Joined:
    Jul 20, 2005
    Messages:
    401
    Likes Received:
    12
    Status:
    Optometrist
    Correct. I didn't have to pay any quarterly taxes until year two (state & federal). These can be steep though. Remember, do you have to account for state taxes too (not every state has income taxes i.e. Texas)? I'd put 30-35% aside for taxes.
     

Share This Page