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Author: foo1bar Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Re: Estimated Tax on Royalty payments Date: 8/19/2013 9:04 PM
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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.

1> Are you earning money through W2 wages (ie. employed by someone who gives you a W2?) If so, if I were in your situation, I would think about increasing how much is deducted from my paycheck, rather than making estimated tax payments.

2> Are you using turbotax or similar program? If so I would take last years program, make a copy of my 2012 return, and modify it to be closer to what I expect for 2013. And then I would try to hit one of the safe-harbor provisions, but keep enough $ in a separate savings account to pay the taxes due on April 15.
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