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Financial Planning / Tax Strategies
|Subject: Estimated Tax on Royalty payments||Date: 8/19/2013 8:03 PM|
|Author: zmacek||Number: 119037 of 121585|
So, I just got my first royalty payment today that I will be recieving every month for the next 3 years (give or take). I'm not going to divulge the details, but it's enough that it should have an affect on my overall tax bracket at the end of the year.
I want to start paying the taxes now so a.) I don't get the urge to spend the money and b.) so I don't owe a big chunk next April.
I've been researching a bit, but I'm still sort of confused.
I planned on paying 20% of my income from the royalty payments each quarter. This is a rough estimate of what I'll owe, but I figure it will be close enough? I usually receive a refund each year if that helps put things into perspective.
Does this sound reasonable? Do I need to be more exact with my estimated taxes?
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