Quote:
Estimated tax not required
You do not have to pay estimated tax for 2008 if you meet all three of the following conditions.
You have no tax liability for 2007
You were a US citizen or resident for the whole year
Your 2007 tax year covered a 12 month period
Does this mean that because 2009 is going to be my first year in business and I do not know how much money I am going to make that I do not have to file estimated taxes and that I will have to do it in 2010 based on my 2009 sales?
When I started in 2007 I paid annually and then after did quarterlies based on my previous years earnings. If you don’t do estimated taxes you end up getting penalized. Get in the habit early of putting money aside in a seperate savings account and do this after every job you do. i could of done my own taxes but I was working so much between my other night job and window cleaning that I just was overloaded. Plus a good CPA only cost $130 for the peace of mind that you get all your deductions. In my opinion it’s well worth it.
