Monday, July 28, 2014

do i need to forward an estimated FIT payment and/or state of NJ estimated tax payment when I receive a partial executor's commission or can...

Question

do i need to forward an estimated FIT payment and/or state of NJ estimated tax payment when I receive a partial executor's commission or can i just declare it and pay taxes on it when i file my 2014 returns?



Answer

Best is to pay the estimated tax now, to avoid a possible penalty for underpayment of estimated taxes. Do not include self-employment SS taxes in the federal payment, as these commissions are not considered self-employment income.



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