Estimated tax payments are advance payments for your Federal income taxes.
When you are an employee your employer sends in your income and social security taxes for you. Self-employed individuals, such as real estate agents, are responsible for making their own payments.
You have to make quarterly estimated tax payments during 2012 if your estimated tax liability, after accounting for withholding taxes, is $1,000 or more.
To be on the safe side all of your tax payments, made for 2012, should be at least 100% of Line 61 on your 2011 Form 1040.
Failure to pay a required estimated tax installment will subject you to a penalty based on the prevailing IRS interest rate applied to tax deficiencies.
Due dates for estimated tax payments in 2012 are April 17, June 15, September 17 and January 15, 2013.
If you are a new agent consider setting aside, in a separate savings account, 25% of each commission you receive to pay for your income taxes.
Here is a link to more information on estimated tax payments:
http://www.irs.gov/pub/irs-pdf/f1040es.pdf
About admin
Check out My Space page for a more information on me. In your search type "Gary Sweat".
I was born and spent the first 28 years of my life in Richmond, California. I have also lived in San Diego and North Idaho. I moved to Washington State in 1991.
I have 30 years of experience as an Accountant.
• After graduation from college I worked for a financial services firm in Oakland, California. The firm was comprised of CPAs and attorneys. I was in charge of all financial needs for 25 businesses. Duties were preparation of financial statements, income tax and sales tax returns, obtaining business licenses and giving tax and operational advice to the businesses. I also prepared payroll and payroll reports for my clients. The job entailed extensive use of RIA and CCH references for tax research. Clients ranged from medical groups, delicatessen chains, transmission repair chains and many others. I was employed with this company for 3 ½ years.
• In 1983 I opened my own CPA firm in Vacaville, California. My clients required me to prepare financial statements for their companies, as well as every type of tax return (1040, 1065, 1041, 1120 and 1120S) along with state returns. Clients also needed payroll, payroll reports and sales tax returns. My duties required tax research and advice on a wide variety of topics. As a result of close proximity to Travis Air Force Base I prepared tax returns for many states due to the relocations, both civilian and military. In addition to my initial office, I opened two more offices in Fairfield and Walnut Creek, California with a total of nine employees at these offices.
• In 1992 I had an opportunity to purchase a CPA practice in Friday Harbor, Washington. Friday Harbor is located in the San Juan Islands of Washington State. Duties remained consistent with the types of work I had been performing in Vacaville, but with many more clients.
• In 2001 I relocated my firm to offices in Bothell and Bellevue, Washington.
• Over the years the majority of my clients have come to be real estate agents and their clients. Therefore, for quite some time I have specialized in preparing tax returns for real estate agents.
• I received so many requests for tax advice from real estate agents that I authored a book - “Tax & Financial Tips for Real Estate Agents.” I used ecommerce solutions to promote the book and it has sold in all 50 states. I am continually called on to provide advice concerning a wide variety of tax questions, preparation and advice, both locally and in other states.
• I am also a retired Real Estate Agent.
Check out my website: http://agentstaxtips.com
