Why should I pay estimated taxes?

They aren't likely to refund it a second time. You might have met one of the "safe harbor" rules the first time. And people who have never incurred penalties before frequently get them forgiven.

Yes. Most employee's taxes are taken out by their employer so they don't have to worry about it each pay check. You being the owner of a business do not have taxes taken out automatically so they require you to pay estimated quarterly taxes. When you file your return at the end of the year, they will refund or bill you for the amount you over/under paid. They make self-employed people do that so there isn't a huge tax bill at the end of the year because the IRS knows a lot of people won't save money for taxes throughout the year.

relax. it is now not that undesirable! once you record by way of January 15 and pay all which you purely owe, you purely isn't penalized. Or if youin case you owe under $one thousand, you purely isn't penalized. Or in case you probably did not have any tax criminal accountability final 12 months, you are able to not be penalized, so seems such as you're off the hook on that foundation. or you would be charged a penalty for now not submitting envisioned taxes. the quantity of the penalty might count upon how plenty you owe, in spite of the incontrovertible fact that till you owe countless numbers of dollars it could't be plenty. you have a pair greater quarterly last dates for 2010 envisioned taxes, in Sept and in January. you would be smart to make payments then in case you will owe plenty for the year, and make greater efficient envisioned payments which you purely'd often deliver quarterly to make up for the two you probably did not deliver.

if your income tax liability the previous year or the current year would be $1000 or less, no you do not need to predeposit on 1040ES