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That is a good consideration and is also why the answer to estimated payments are not a one size fits all. Losses in Q3 or Q4 may offset gains in Q1/Q2. Since section 1256 contracts aren't subject to self employment tax, the pressure to send them in is greatly reduced.
The Green Trader Tax guide is good; I've been in public accounting for 12 years and I use it as a reference regularly.
I respect your opinion certainly. I suppose the definition of "required" is relative and means something different to each taxpayer. I would not classify being subject to underpayment penalty as a requirement where others may say a penalty is the consequence of a requirement violation.
In your example though, $700 on a 1099-B and $700 on an NEC are taxed differently. Broker barter transaction gains/losses are ultimately reported on Sch D and NEC payments are on Sch C where they are subject to self-employment tax. In this case the $700 Sch D income may only be taxed at a rate of 15% where the Sch C income has the 15% federal income tax and 15.3% self employment tax totaling 30%. Those with self employment income should be more concerned with quarterly payments because of the SE tax.
In 2019 I had a client who's house was about to be levied and auctioned by the IRS to offset his six figure tax liability. We were able to get the house off the chopping block by establishing a payment arrangement AND him making quarterly estimated payment's...so they are certainly important. He was a self employed contractor with a considerable SE tax factor.
I do not personally make estimated payments and pay the tax at the end of the year. The underpayment interest is worth it in order to hold the cash longer.
Good point on the exchange members, I believe they do pay SE. I’ve never personally done a return for one but would be interested to see how that is reported.
In my opinion, higher taxes is not a good thing. Neither is continuing to spend money we do not have nor continuing to print money. We will all most certainly pay the price for what our elected officials are doing to the economy. It is only going to get worse if we do not get some sane representatives in Congress and government. Why would we want to allow our federal government to raise taxes and continue to raise spending? Such behavior does not end well.
Same. I have never paid. I always pay the whole thing when I file. I pay a penalty each year but it's a few hundred dollars. I've considered paying estimates at the state level because the penalties are much higher, but in the end I never do.