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Author: sockwonder Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121592  
Subject: estimated tax questions Date: 6/16/2005 10:39 PM
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Hello,

I just formed a one-person LLC in DE a few weeks ago. I used to be under the impression that I would have to pay estimated tax payments no matter what, but after looking at the 1040-ES form, I'm not so sure. It says:
In most cases, you must make estimated tax payments if you expect to owe at least $1000 in tax for 2005 (after subtracting your withholding and credits) and you expect your withholding and credits to be less than the smaller of 1) 90% of the tax shown on your 2005 return or 2) 110% of the tax shown on your 2004 return.

OK, so that is saying that I should make estimated payments if I expect to owe at least $1000 in taxes between my regular W4 wages and my business income, after all payments and credits have been applied, right? We got a refund of $4000 or so last year, and our picture isn't changing at all. I forsee having maybe two or three more customers before year's end, with a total profit of maybe $1500 tops. So there's basically no way that I would ever end up owing $1000 in tax, right? Am I missing anything?

Thanks!
- Ken
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