Discussion in 'Index Futures' started by amedhussaini, Feb 21, 2009.
What's a good estimate of % so I can set that portion aside each month?
Are you making so much money that this is a problem? ;-)
60% * 15 % = 9%
40% * 35% = 14%
You will need to make quarterly payments.
Thanks as well I didn't know quarterly payments were required. You happen to know why do futures traders have to pay quarterly and stock traders yearly?
That's false. You determine @ year end when you get your 1099-B.
Quarterly payments apply to every trader of everything that expect to owe more than $1000 in taxes. Only losers can skip quarterly tax payments.
Please read the IRS rules before you make a costly mistake.
Estimated tax is the method used to pay tax on income that is not subject to withholding. This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes and awards. You also may have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough.
Estimated tax is used to pay both income tax and self-employment tax, as well as other taxes and amounts reported on your tax return. If you do not pay enough through withholding or estimated tax payments, you may be charged a penalty. If you do not pay enough by the due date of each payment period you may be charged a penalty even if you are due a refund when you file your tax return.
Who Must Pay Estimated Tax
If you had a tax liability for 2008, you may have to pay estimated tax for 2009.
You must pay estimated tax for 2009 if both of the following apply.
You expect to owe at least $1000 in tax for 2009 after subtracting your withholding and credits.
You expect your withholding and credits to be less than the smaller of;
90% of the tax to be shown on your 2009 tax return, or
100% of the tax shown on your 2008 tax return. Your 2008 tax return must cover all 12 months.
Sole proprietors, partners, and S corporation shareholders - You generally have to make estimated tax payments if you expect to owe tax of $1,000 or more when you file your return. Use Form 1040-ES, Estimated Tax for Individuals, to figure and pay your estimated tax. For additional information, refer to Publication 505, Tax Withholding and Estimated Tax.
This year they added
wtf is that bullshit?
That's exactly correct. Not only do traders have to pay quarterly estimated taxes, so does everybody else in the US who will pay income taxes on income that has no taxes withheld.
The people here who claim otherwise are not familiar with US tax laws.
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