Question

I just learned about the quarterly tax filling for LLC.

Forum|Forum|2 years ago
August 30, 2023
1 reply
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How do I catch up on my payments?

What if I also have a rented property (not associated to the LLC), can I fill this part with my personal taxes in April?

Ask the Experts - Self-Employed - Aug 2023

JBedford

Hi, @r0sabr0y , thanks for your question!

The bad news is that you can't necessarily "catch up" on estimated tax payments that were not made by the quarterly deadlines. However, you can at least minimize any negative impact. Simply make a payment by the next deadline, which is September 15, in the total amount that you would have paid by now if you had made the desired payments in April and June. Also, if you pay enough in so that you owe less than $1,000 when you file your tax return next year (or even better, enough to get a small refund), this may ameliorate any penalties.

As to your second question, if you have a single-member LLC, that will also be filed as part of your personal tax return. Any rental income outside of the LLC would be as well, assuming that you are the only owner. Only a multi-member LLC would require a "business" tax return, which would also be filed next year. But you still might want to make estimated payment for all of this activity.

Hope this helps, please let me know if not!

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R

r0sabr0yAuthor

It's a sole-proprietorship LLC.

The rental use to be my home till last year and belongs to both my husband and I (again, it's a personal property, independent to the LLC).

More questions:

- Are all LLCs obligated to fill quarterly? or is there a minimum income?

- Does TurboTax provide any services to help with quarterly payments? how much to pay, etc? If not, where can I find more info to do it myself?

- What should I expect to pay for the property rental in Chicago, IL?

JBedford

1) It has nothing to do with having an LLC. It has to do with earning self-employment income, which does not have any tax withheld. One should make estimated tax payments if not doing so would result in an underpayment penalty.

2) The bare minimum you should pay is 100% of your 2022 tax liability from Line 24 of your Form 1040. If you make over $75,000 as a single filer, or $150,000 if married filing jointly, in self-employment income, then you should pay 110% of that number. You would pay this in four quarterly payments of 25% (or 27.5%) each. This will allow you to avoid an underpayment penalty. Also, don't forget to count any other tax payments you make. For example, if you have tax withheld from a job. This will reduce the amount you need to pay.

3) The Illinois income tax rate is a flat 4.95%.

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