Did you know that there are around 16 million self-employed workers in the United States of America that pay self-employed taxes? Being self-employed is complicated when it comes to estimated taxes because you don’t have a company that is withholding taxes on your behalf.
One of the things that come with being self-employed is needing to file quarterly taxes with the Internal Revenue Service. These small business taxes go along with your federal income taxes when tax filing season comes around.
If you’ve never had to file quarterly taxes then it can seem intimidating. The good news is that you’re in the right place to learn more about tax filing with estimated taxes for this upcoming tax season.
Keep reading this article to learn more today!
When Should You Pay Estimated Taxes?
There are four dates that you need to remember when it comes to paying your estimated taxes in the United States of America. You’ll pay your quarterly taxes on April 15th, June 15th, September 15th, and January 15th of the following year. You also have the option of paying your taxes all at one time on April 15th as long as you pay everything that you owe.
How to Estimate Future Income
Another thing to keep in mind is learning how to estimate your future income. If you plan on figuring out how much federal income tax you’ll owe then you need to have an estimate of your income as well as the amount of money that you plan on deducting.
Make sure you have your tax returns from your previous years on hand along with any records of payments that you’ve made over the past year. If you combine that with one of these tax planning strategies.
How to File and Pay Quarterly Taxes
Once you reach a point where you’re ready to send your estimated payments to the IRS, you’ll have a number of options to choose from. You can either pay your estimated taxes online to the IRS or you can do so by mail.
It is also a wise idea to sign up with the Electronic Federal Tax Payment System as a way to see the past payments that you’ve made to the IRS. One big thing to keep in mind when you’re filing quarterly taxes is that you’ll also have to do a typical tax return in April each year.
The IRS uses that tax return as a way to reconcile what you’ve already paid to the government in estimated taxes with what you actually owe. You might end up getting money back from the government on the money that you’ve made and paid.
Now You’re Ready to File Quarterly Taxes
If you’re a self-employed worker then it is imperative that you learn how to file quarterly taxes. Make sure that you have a strong idea of what you think you’ll make and how much you can deduct when paying your estimated taxes on a quarterly basis.
For more helpful articles like this one, make sure you check out our blog.