I am doing some self-employment work. At what income level do I need to send in quarterly estimated tax payments. I want to avoid IRS fines and penalties and live in North Carolina.

ANSWER

The BIDaWIZ Team's Answer:

In most cases, you must pay estimated tax for 2012, if you expect to owe at least $1,000 in tax for 2012, after subtracting your withholding and refundable credits. In addition, you expect your withholding and refundable credits to be less than the smaller of: 90% of the tax to be shown on your 2012 tax return, or 100% of the tax shown on your 2011 tax return. The only exception is if you had no tax liability for the 2011 tax year.