Income and quarterly tax payments

[kathy4530050]

I am hoping that a self-employed person here has some experience with the following:

If I file this month , and don't have enough $$ in my account right now to pay 2nd quarter taxes for income earned in April, can I still deduct the amount owed from what I report as my total income?

Thanks!

[LuciluS]

I am hoping that a self-employed person here has some experience with the following:

If I file this month , and don't have enough $$ in my account right now to pay 2nd quarter taxes for income earned in April, can I still deduct the amount owed from what I report as my total income?

Thanks!

I'm not definite on this, but I would say your taxes for ONLY April would be an expense item along with your 1st Quarter Taxes.

As a disabled Accountant, I would think if a self-employed individual had to claim his/her income for the month of April, then the self-employed taxes for April would be applied to expenses.

Like I said, I'm not definite on my answer as IRS rules are not always applied in Bankrupty Laws.

Luci

[diebroccoli]

just had this come up today in a mtg with my Attny and a TT who is advising us prior to filing. They said that the payment itself isn't important, so much as the obligation of payment. Meaning, even if you dont pay, its still an expense b/c you're obligated to pay.

I would check with your attny to be certain, but thats the info i got just a few hours ago

[kathy4530050]

Thank you Lucilu and DieBroccoli. I thought it probably would be ok to claim April taxes due as an expense, but wasn't sure . . . however I have an appointment with my lawyer tomorrow and will find out for sure. Thanks!