Should I be paying quarterly taxes? So confused…

General
1

Hi everyone, I started a sole proprietorship LLC and had only one sale last year in November for $425. Do I need to pay quarterly taxes, which are due January 13th?

I use Found, an online bank and invoicing system, and it automatically saves the estimated tax amount whenever I make a sale. When I click the option to ‘pay quarterly taxes for Jan 13,’ it says I have nothing to pay.

Does this mean I’m good? Was the sale too small to matter? I emailed my tax person, but they didn’t get back to me, so I thought I’d ask here. Thanks for the help!

2

You don’t need to pay.

3

Vesper said:
You don’t need to pay.

Thanks so much, really appreciate the reply!

4

Since the amount is below the threshold for a late penalty, you can wait and just pay the balance when you file your return.

5

Sage said:
Since the amount is below the threshold for a late penalty, you can wait and just pay the balance when you file your return.

Thanks, that clears it up!

6

If your total tax for the year is under $1,000, there’s no penalty for skipping quarterly payments.

7

Rory said:
If your total tax for the year is under $1,000, there’s no penalty for skipping quarterly payments.

Thank you, that helps a lot!

8

Rory said:
If your total tax for the year is under $1,000, there’s no penalty for skipping quarterly payments.

Exactly. Here’s a helpful link: Topic no. 306, Penalty for underpayment of estimated tax | Internal Revenue Service

9

@Devon
Thanks for the link!