State And Federal Estimated Taxes ?

JKS

Instructions on tax forms say to use you last year's tax to make the estimated payments.

I just started my business and have no past revenue to use other then a former employer that I was employed with for only the first three month of year 2005..

How do you know what to pay every quarter to avoid the estmated tax penalty?

any sugesstions on how to calculate? nobody teaches you these things when you get your license..

Mike Finley

If you don't have a last years tax to base it on you don't have to pay at all to avoid the penalty as I recall. That rule is to get you paying a minimum amount of tax once you have a history going.

You should be okay legally, however you really - and I can't stress enough how really important it is - but you should really have an accountant review your progress every quarter so you don't end up with a $15,000 tax bill due at the end of the year.

I have my accountant look it all over each quarter and she guestimates my estimated, adjusting up or down so that come March 15 and April 15th that payment is no different of a suprise than any of the others.

Teetorbilt

Like Mike said. If your business is growing, you could be in deep caca at the end of the year. I went there once.

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