WASHINGTON – April 5, 2011 – While people who are self-employed – including most real estate agents and brokers – have higher take-home pay because they don’t have taxes withheld from paychecks, the Internal Revenue Service requires them to pay estimated taxes four times per year to cover income and self-employment taxes.
This requires agents to set aside enough money to make the estimated tax payments.
Sole proprietors, partners in a partnership and members of a limited liability company must all make quarterly estimated payments, providing they expect to owe $1,000 or more in federal taxes for the year. People who did not pay taxes the previous year because they were not employed, or did not turn a profit, do not have to pay estimated taxes.
A simple way to calculate estimated taxes: Pay the lesser of 90 percent of the tax due for the current year or 100 percent of the total taxes paid last year (110 percent if earning more than $150,000 the previous year).
For 2011, the four payments are due by April 18, June 15, and Sept. 15, 2011; and the final payment is due by Jan. 15, 2012. However, anyone who made no income by March 31 does not have make the first payment.
Source: Inman News (03/25/11) Fishman, Stephen
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
This requires agents to set aside enough money to make the estimated tax payments.
Sole proprietors, partners in a partnership and members of a limited liability company must all make quarterly estimated payments, providing they expect to owe $1,000 or more in federal taxes for the year. People who did not pay taxes the previous year because they were not employed, or did not turn a profit, do not have to pay estimated taxes.
A simple way to calculate estimated taxes: Pay the lesser of 90 percent of the tax due for the current year or 100 percent of the total taxes paid last year (110 percent if earning more than $150,000 the previous year).
For 2011, the four payments are due by April 18, June 15, and Sept. 15, 2011; and the final payment is due by Jan. 15, 2012. However, anyone who made no income by March 31 does not have make the first payment.
Source: Inman News (03/25/11) Fishman, Stephen
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
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