Estimated taxes

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Diane Stolarz

Please ask your question here:"These payments reflect the income earned in the quarter prior to the due date." First quarter had -0- earnings.  Why the due date of June 15?
 

Original Fast Forward Academy test bank question:
Susan, a single filer, started a home-based dress business on March 1, 2012. She was an employee and paid income taxes of $6,000 for 2011. Susan's business had net income of $0, $9,000, $11,000, and $15,000 respectively for each of the calendar quarters in 2012. Susan's total tax liability for the year was $5,500. Her first payment of estimated taxes is due:

A. April 15.
B. No estimates due if Susan files by Jan. 31, 2013.
C. June 15.
D. Susan's tax liability for 2011 exceeds 90% of her 2012 tax liability so no estimates are required to be paid.

Explanation:
Estimated tax payments are due by the 15th day of the 4th, 6th, 9th and 1st month of the following year. These payments reflect the income earned in the quarter prior to the due date. Her first estimated payment must be made by June 15th for Income earned in the second quarter.

FFA EA Book Reference: CH 1 Filing Information
Subsection: Advising the individual taxpayer
Subject: Estimated tax
Correct Answer: C


Novice Level Question
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1 Answer(s)

Vote for this anser to Estimated taxes
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JOHN NGUYEN

The correct answer for this question is C.

Susan's business had a net income of $0 for the first quarter, and the $9000 for the second quarter, she must make an estimated by the due date that was June 15. Here is the schedule for paying estimated tax for the calander year taxpapyer:

For the period: Due date:
Jan. 11 – March 31 April 15
April 1 – May 31 June 15
June 1 – August 31 September 15
Sept. 1 – Dec. 31 January 15
next year2

Hope this will be uesful.


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