Independent Contractor question part 2: I haven't sent in my quarterly tax payment at all this year should I s

Question

So I'm going to send my first payment in today, should I use the payment coupon that was due 6/16/08? Or should I use the payment coupon due on 9/15/08? Also should I pay all of the back taxes for this year on this payment coupon (for the two missed payments)? Thank you!

Answer 1

Let's say that your required quarterly payment is $500.  That means you were supposed to send in $500 on 4/15, $500 on 6/15 and then $500 on 9/15.

No matter which voucher you use, the IRS will look at your payment and say it's the first one and it's over 2 months late.  If you send in $750, that will count as finally having made the first payment and then half off on the second one, etc.

Answer 2

It really doesn't matter which coupon you use.  However, if you made no payment before April 15, and you didn't allocate part of your tax refund to estimated taxes, you'll want to get the payment in as soon as possible, including all "back" (estimated) taxes.

Answer 3

I try to send 1/4 of my total tax for last year.  If you miss a quarter, don't worry.  Use the form for the correct 1/4.  You don't have to get it all perfect.  They just want the money.  

There is a difference between sending "back taxes" and just catching up on the current year's shortage of estimated tax.  Don't send back taxes with "estimated" payments.