[freedumb2003]

Sorry — misread.

No you don’t. As I said, I just had a year like that.

As a new taxpayer (I suggest S-Corp) you will not be held to estimates or anything like that. DO get an EIN and accountant right now.

Just pay at the end of the year like normal. Also as I said, put money away for taxes.

[FredZarguna]

This is INCORRECT. The IRS does not cut "new taxpayers" any special break. If you have income not subject to withholding that is not a capital gain or other form of special income you MUST make quarterly payments on the income not subject to withholding that cover either 100% of your previous liability or 90% of next year's liability. If your income subject to withholding covers either of those two cases you don't need to make quarterly payments, otherwise, you do.

Oversimplified example: you make $90,000 on a W2 job, $10,000 on outside work not subject to withholding. You do not have to make a quarterly payment. (YOU WILL have to pay taxes on the $10K next April.) If you make $15,000 on the outside job, you MUST make quarterly payments or you WILL be charged penalties and interest.

Note I am Oversimplifying, and talking here about net taxable, not gross income. Also some seasonal work and farmers and fisherman have special exemptions.

[FredZarguna]

This is INCORRECT. The IRS does not cut "new taxpayers" any special break. If you have income not subject to withholding that is not a capital gain or other form of special income you MUST make quarterly payments on the income not subject to withholding that cover either 100% of your previous liability or 90% of next year's liability. If your income subject to withholding covers either of those two cases you don't need to make quarterly payments, otherwise, you do.

Oversimplified example: you make $90,000 on a W2 job, $10,000 on outside work not subject to withholding. You do not have to make a quarterly payment. (YOU WILL have to pay taxes on the $10K next April.) If you make $15,000 on the outside job, you MUST make quarterly payments or you WILL be charged penalties and interest.

Note I am Oversimplifying, and talking here about net taxable, not gross income. Also some seasonal work and farmers and fisherman have special exemptions.

[SteveH]

Yah i seem to have skated around the edge of disaster this past two years so far without an S-corp. but if a certain project ever gets fired up again then i may have to revisit that decision. I am not however holding my breath that that will happen. So la la, live for today.