# quarterly payments??



## dnlbaboof (Nov 13, 2015)

""1. You expect to owe at least $1,000 in tax for 2017, after subtracting your withholding and refundable credits. 2. You expect your withholding and refundable credits to be less than the smaller of: a. 90% of the tax to be shown on your 2017 tax return, or b. 100% of the tax shown on your 2016 tax return. Your 2016 tax return must cover all 12 months."""

can somebody translate this into english. I cant make any sense of it a couple of examples would help. Uber recommends the site credit karma to do taxes, anyone try it? its free looks pretty good.........


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## UberTaxPro (Oct 3, 2014)

dnlbaboof said:


> ""1. You expect to owe at least $1,000 in tax for 2017, after subtracting your withholding and refundable credits. 2. You expect your withholding and refundable credits to be less than the smaller of: a. 90% of the tax to be shown on your 2017 tax return, or b. 100% of the tax shown on your 2016 tax return. Your 2016 tax return must cover all 12 months."""
> 
> can somebody translate this into english. I cant make any sense of it a couple of examples would help. Uber recommends the site credit karma to do taxes, anyone try it? its free looks pretty good.........


If you owe the IRS $1000 or more when your 1040 is due you'll being paying interest from the time the quarterly payment was due and subject yourself to an underpayment penalty.


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## Trafficat (Dec 19, 2016)

UberTaxPro said:


> If you owe the IRS $1000 or more when your 1040 is due you'll being paying interest from the time the quarterly payment was due and subject yourself to an underpayment penalty.


Yikes!  Maybe next year I can get myself to make those quarterly payments on time!


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## entrep1776 (Nov 3, 2016)

UberTaxPro said:


> If you owe the IRS $1000 or more when your 1040 is due you'll being paying interest from the time the quarterly payment was due and subject yourself to an underpayment penalty.


I've researched this a little still don't understand.

My situation:
for tax purposes, I lost $700 driving Uber when I filed my 2016 taxes.

If I plan to net $12,000 in 2017,would I have to pay quarterly?

I think no because of this:
If you did not pay enough in estimated tax payments (or other tax sources such as withholding), you will have to pay a penalty. You can avoid the penalty as long as you pay at least 90% of the tax for the current year, or 100% of the tax you owed for the prior year, whichever is smaller.

But if I net $12,000 in 2017. I would have to pay quarterly in 2018 to avoid penalties?


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