heretic

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10+ Year Member
5+ Year Member
Dec 4, 2004
49
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?
 

KHE

Senior Member
10+ Year Member
Jun 14, 2005
3,344
345
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?
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.
 

IamMDMBA

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10+ Year Member
Nov 23, 2008
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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?
If you had no tax liability last year, you DO NOT have to pay estimated taxes this year.
 

Ryan_eyeball

Senior Member
10+ Year Member
Jul 20, 2005
419
39
Kansas
Status
Optometrist
If you had no tax liability last year, you DO NOT have to pay estimated taxes this year.
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.
 
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