Paying your anticipated quarterly tax and monitoring your business expenses are necessary to stay on top of your taxes.
Regardless of the freelancing you do, you must pay taxes every quarter. Why? Because your company does not automatically deduct these taxes from each payment. Instead, you are responsible for calculating and submitting your quarterly tax payment on time. And you can use a quarterly tax calculator. But doing so can be stressful and time-consuming, taking you away from work. So in the following paragraphs, I’ll go over how to utilize the quarterly tax payment calculator, the terminology used, and how to submit those quarterly tax payments once they’ve been completed correctly.
When Should You Pay Estimated Quarterly Taxes?
If required, there are deadlines for reporting estimated tax payments to the federal government. The year is divided into four quarters by the IRS. The fifteenth month following the end of a quarter is the deadline for making anticipated tax payments. Although that is only sometimes the case, most IRS payments are the same amount.
Jan, Feb, and Mar make up the year’s first quarter. The projected tax payments for this quarter are due on April 15. The following quarter is made up of April, May, and June, with the tax payment due on June 15. Your tax payment is due on September 15, which falls on the third quarter of the year, which is made up of July, August, and September. Payment is due on January 18, 2022, and the final three months of the year are October, November, and December.
How to Pay Estimated Quarterly Taxes
After utilizing the calculator for quarterly tax payments, paying your estimated tax is easy. IRS Form 1040-ES payments can be made online at the IRS website with a credit card, direct debit, or by mailing a check along with the form. If you want to send a paper copy of your Form 1040-ES form, the correct address is listed in the instructions.
What will happen if I don’t pay?
The Internal Revenue Service (IRS) will not accept a negative response. You can pay them now or later, but delaying your payment will cost you more. If you owe taxes, it’s imperative that you pay them on time and according to the timetable.
The IRS will assess fines and penalties if you don’t pay your estimated tax liability when you file your return. The sum you owe will influence how much these costs are. The IRS anticipates that you will pay your initial tax owed and any charges when you file your income tax return at the end of the year.
One way to save on taxes is to take advantage of self employment tax deductions. You can choose to itemize deductions, like the food and entertainment deduction or the self employed health insurance deduction. The write-offs get recorded on Schedule C.
Although every person’s tax status is unique, estimating taxes and paying them is typically straightforward. Whether you have extraordinary circumstances or need additional help with estimated tax, the experts at Flyfin are here to help. If you need help figuring out whether to make estimated tax payments or how many, our savvy accountants will be happy to help.