How do you calculate your estimated tax payment every quarter when 100% of your income comes from trading full time? I mean there's no way to predict how much you are going to make in this business. You may make a killing this quarter and then have a huge draw down next.
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Calculating estimated tax? (trading full time)
- Thread starter turkeyneck
- Start date
You can use last year income as estimated tax to prevent interest if you underpaid the tax.How do you calculate your estimated tax payment every quarter when 100% of your income comes from trading full time? I mean there's no way to predict how much you are going to make in this business. You may make a killing this quarter and then have a huge draw down next.
Turbo Tax if you do your own taxes calculates the estimated taxes for the coming year based on the amount of taxes you under withheld. That is so, you do not get penalized for under witholding taxes. It has nothing to do with your trading income but, your total income for the past year. That is what the calculations are based on.
%%You can use last year income as estimated tax to prevent interest if you underpaid the tax.
I had a goal of paying just a bit more than i owed/ too much + you loaned them money for free. Too little + they charge penalties +.................................................................