If, like most real estate agents, you’re self-employed, you’re supposed to make your second quarterly estimated tax payment for 2012 on June 15.

So soon? Didn’t you just make a quarterly payment last April 15? Yes, you did. But for some reason the IRS calculates quarters differently from the rest of us. It wants your second “quarterly” payment on June 15. Your third payment is due Sept. 17 and the fourth due on Jan. 15, 2013.

How much are you supposed to pay?

The IRS would like the four estimated tax payments you make each year to add up to your tax liability for the year — that is, your total income tax and self-employment tax (Social Security and Medicare tax) combined.

However, paying the exact right amount can be difficult if your income varies substantially from year to year (as it does for many real estate professionals). If you don’t pay enough estimated tax, the IRS will impose a penalty.

Fortunately, there is a way to avoid having to estimate how much you’ll make this year. No matter what your income for the current year turns out to be, you won’t have to pay any penalties if the estimated tax you pay is at least the smaller of:

  • 90 percent of your total tax due for the current year, or
  • 100 percent of the tax you paid the previous year, or 110 percent if you’re a high-income taxpayer (those with adjusted gross incomes of more than $150,000 or $75,000 for married couples filing separate returns).

What if you don’t want to pay now?

However, just because the IRS says you’re supposed to make an estimated tax payment on June 15 doesn’t mean you have to. Unlike an employee, no taxes are withheld from your pay when you’re self-employed. You are perfectly free to pay less than you owe or even none at all. You don’t have to ask the IRS’s permission to do this or file any forms. Just reduce or don’t make your payment.

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