Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 15
We do not have a monthly paycheck but are paid by the job. Our annual income is not preset.

So, you seem to be saying you are self-employed.

How do you recommend we pay this amount?

Well, if I could turn on the time machine, I would have recommended that you set aside 25% - 35% of your 2009 income to make estimated tax payments, and then you wouldn't have this issue. Since I can't turn on the time machine, I would highly recommend that you start doing that right now for your 2010 income, so that you don't run into this issue again.

Please note - if you haven't made estimated tax payments, not only do you owe taxes - you very likely owe penalties and interest. That's just throwing your money away.

If you can't afford to set aside your income in order to make estimated tax payments, then you are living above your means.

Borrow from IRA,life insurance or take a loan? What order is advisable?

Well, you can't borrow from an IRA, so that's out. Whether you should borrow from life insurance, credit cards, or take another type of loan depends on the terms. You also might want to look into a payment plan with the IRS, and see how the terms compare with your other options.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.