I did not pay estimated taxes as royalty checks were dramatically smaller and wasn’t sure if we made enough to even file. So inexperienced as this was the first time to receive royalties.
We are filing jointly and made $6000 in royalties plus social security.
Will we have to pay estimated taxes for the year?
Thank you for your help!!
You need to talk with your accountant to figure out your estimated taxable income. Royalties are reported on Schedule and you can deduct property taxes and depletion. You may have other income such as interest or dividends which need to be taken into account. If you prepare your own taxes, then fill out a form with all your information to get an estimate of what you may owe.
If you’re required to make an estimated Fed tax payment, it’s due 1/15/21.
Thank you. My total gross income that is taxable is $6,000 in royalties. Social Security plus that is all we made for 2020. We paid our estimated taxes at the end of the year 2019 as that was before oil crashed.
Did we make enough to even file 2020 return or Will we owe estimated taxes on that $6,000 we made for the entire year of 2020? Thank you for your help!
You will need to check with your accountant to determine if you meet the federal and your state’s filing requirements.
You will need to file a return but you will not owe anything.
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