tax question, help please ASAP.

SO you are saying he is better off just paying the whole thing in April?

He will avoid @ least 1/4 of the penality and interest.

I agree it is best to pay quarterly, but that is too late for The OP at this juncture.

 

at this point yes. but whatever you do dont lose the money in 2010 before you pay. you will be in a big pickle then.

 

IRS has put me on hold for 37 minutes now. i am giving up.

what's the penalty for me? ball park estimate is appreciated. percentage wise

i'm in the USA.

 

not sure what it is now but here is 2006 info. it shouldnt be much different:
http://www.bankrate.com/brm/itax/tax_adviser/Oct06_estimated_tax_payment_a1.asp

 

Thanks for the info.

I am off line now.

 

if you profited in this market you MUST get a good accountant who understands the market and your taxes. Magazines, Seminars license fees are all deductible if you are a pro. also the drycleaning and maintenance of certain items etc,. Check with a tax professional. The IOWE S is not playing they want their money...

Hire a professional please so you won't be blogging from Jail with your new BOYFRIEND named Bubba... LOL

 

that is silly. the irs does not put people in jail for honest mistakes.

 

At least the guy is asking relevant questions 3 1/2 months before he has to file!

Willy is ok in my book, I'll even give him the name of my CPA, who ONLY does trader's tax and is very reasonable.

 

Here you go http://www.irs.gov/pub/irs-pdf/f1040es.pdf

 

It depends on when the "big gain" was made on trading in 2009. If you made those gains in Q4 2009, you still have time to file estimated tax without penalty. Deadline for Q4 2009 estimated tax is Jan 15, 2010.

If your gains were throughout the year (Q1, Q2, Q3), you are supposed to make estimated payments throughout 2009. If it is the case, still, you should make your estimated tax payment before Jan 15, 2010 to avoid further interests (penalty).

Don't quote me on this but I think the penalty (interest) is something like 1% per month for the amount of tax owed. I think. The IRS publications have the exact figures.

You have up to April 15, 2010 to file your 2009 tax return (and August 15, 2010 if you apply for an extension). You just can't owe them taxes without penalty.

Use form 1040 ES for your estimated tax payments.

And don't forget the state tax estimated tax (if applicable) too.