Generally if you had 1040-ES vouchers generated on your prior year tax return, you'd likely want to make those estimated tax payments quarterly. However, you can avoid penalties on your current year tax return if you meet the following criteria:Your filed tax return shows you owe less than $1,000 orYou paid at least 90% of the tax shown on the return for the taxable year or 100% of the tax shown on the return for the prior year, whichever amount is less.Ruth, CPA, Esq.

Question

Do I need to file the self-employed quarterly filing if I am operating at a loss?

Forum|Forum|2 years ago
August 30, 2023
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Ask the Experts - Self-Employed - Aug 2023

Ruth C-L

Generally if you had 1040-ES vouchers generated on your prior year tax return, you'd likely want to make those estimated tax payments quarterly. However, you can avoid penalties on your current year tax return if you meet the following criteria:

Your filed tax return shows you owe less than $1,000 or
You paid at least 90% of the tax shown on the return for the taxable year or 100% of the tax shown on the return for the prior year, whichever amount is less.

Ruth, CPA, Esq.

Q

quorumof1

Hi There

Ruth gave top notch advice, but as an add on. Please don't forget estimated taxes should be calculated on all sources of income not just self employment income.