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Retirement
Calculating your estimated quarterly taxes
Calculating your estimated quarterly taxes

Dear Liz: I recently retired and started my own consulting business, which is doing very well. My question is on taxes. I have been told that I must pay quarterly taxes, but I have no idea if I will make $10 this month or $10,000. How do I estimate my income if I have no idea? Can I just wait till the end of the year and figure it out then? Answer: You don't want to do that. If you owe a significant amount at the end of the year, you'll owe a substantial penalty on top of your tax bill. The good news: The IRS requires you to figure your estimated quarterly taxes, not your "guesstimated" taxes. You'll make the calculations based on what you actually earned that...

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