This is a good thread and is being reposted here
This is the first post from John Masterson, reposted here for you're reference:
Quote:
I have an S-Corp. I pay myself quarterly. My company receives $85/hr for my work. It pays me $45/hr.
So each quarter, the company makes a fair bit of profit. This profit will all be "zeroed out" when I file my tax return in April...since S-Corporation profits all flow to the income tax of the shareholders, and I am the sole shareholder.
Does the government require me to pay them an estimate of the taxes I will pay on this money that I "receive" in April? I have not been doing that, and no problem so far.
It's not really "income" to me until it flows to my personal account in April, correct?
I know...see an accountant. Pay $150 an hour for the advice.
But really, what do YOU do about estimated tax?
