Estimated taxes

Forum|Forum|1 year ago
August 28, 2024
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Hello, this is my first year in business and my earnings vary greatly month to month. Do I need to make estimated quarterly payments?

evelynm

If you have a tax liability the IRS requires you file quarterly estimated tax payments on Form 1040ES. The estimated tax payments are based on an estimation of your income for the current year.

Here is a link to tax caster to assist in calculating your Federal Tax: https://turbotax.intuit.com/tax-tools/calculators/taxcaster/ You can update this as needed when your income fluctuates.

Self-Employment assistance and further details: Self Employed tax tools/calculator

Estimated tax payments are due four times in a tax year. For calendar year taxpayers (which is most individuals), the due dates are April 15, June 15, September 15 of the current year and January 15 of the following year or the next business day if the due date falls on a weekend or holiday.

Estimated tax payments IRS 1040ES tips

Remitting quarterly is important to avoid penalties. IRS tax penalties - how to avoid them

Be sure to check on your state taxes also - you should be able to find the state estimated tax filing details on their website.

Have an amazing day. Evelyn M (CPA 20+ years)I would love a thumbs up :) + Mark the post that answers your question by clicking on "Mark as Best Answer"