When is a taxpayer required to remit ESTIMATED TAX PAYMENTS?
NOTE: For due dates regarding estimated tax payments, see “Tax Info” and “Tax Filing Due Dates”. How does a taxpayer avoid penalty for UNDERPAYMENT of ESTIMATED TAX? To avoid penalty, the taxpayer must remit tax (withholding tax and/or estimated tax payments) during the year equal to or greater than the tax paid the prior year or owe less than the exempt amounts (see prior question) What EXPENSES can a SELF EMPLOYED individual DEDUCT against self employment income? All expenses incurred, in connection with a trade or business, are deductible provided the expenses comply with the IRS criteria: The expense must be ordinary and necessary.
