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Originally Posted by BoomerSooner
My understanding, however, is that if you are really banking then you might be required to make quarterly estimated tax payments. Its similar to your employer taking taxes out of your paycheck. If you overpay you get that money back in 2009 once you file. If you don't make quarterly payments, and you've underpaid over the course of the year by a certain amount (me thinks the number is $1,000), then you can be subject to aditional penalties. That said, I doubt there are that many officials making enough to come up with that kind of tax liability. Ultimately my point is that there is a case where you would file 2008 income in 2008 (but I don't know if "file" is even the right word).
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Yes -- you need to consider your total tax picture when deciding whether to file quartely estimated taxes. If you have another job from which taxes are withheld, you can increase teh withholdings to cover the amount you'll owe from officiating (and itnerest, capital gains, etc.) and not have to file quearterly.
The penalty for underwithholding (and under-payment of quartly taxes) varies by income, but for most it's something like either last-years taxe's owed or 90% of this year's taxes owed.