Staying on top of your taxes requires paying your quarterly estimated tax and keeping track of your business expenses.
You must pay taxes every quarter regardless of the sort of freelancing job you undertake. Why? Because your employer does not deduct such taxes from each paycheck automatically. Instead, it is solely your tax to determine and pay your quarterly tax amount on time. However, determining how much and when to use it causes stress and takes time away from your job. In the following paragraphs, I'll go through how to use quarterly tax payment calculator, the language used in the process, and how to submit those quarterly tax payments once they've been done correctly.
When Should You Pay Quarterly Estimated Taxes?
There are deadlines for filing estimated payments for your federal taxes if required to do so. The IRS divides the year into four quarters. Payments for anticipated taxes are due on the fifteenth of the month after the end of a quarter. In most cases, each payment is the same amount, although this isn't always the case.
The first quarter of the year is January, February, and March. This quarter's estimated tax payments are due on April 15. April, May, and June make up the following quarter, with the tax payment due on June 15. The year's third quarter is made up of July, August, and September, and your tax payment is due on September 15. October, November, and December are the final quarter of the year, and payment is due on January 18, 2022.
How to Pay Quarterly Estimated Taxes
It's simple to pay your estimated tax after using quarterly tax payment calculator. You can either mail IRS Form 1040-ES with a check or pay online with a credit card or direct debit at the IRS website. The right address is stated in the instructions of your Form 1040-ES form if you want to mail the paper form.
What if I don't make a payment?
The Internal Revenue Service (IRS) does not take no for an answer. You have the option of paying them now or later, and if you choose later, you will pay extra. It's critical to make scheduled tax payments and do so on time if you owe them.
The IRS will charge you fines and penalties if you fail to pay your estimated tax liability when you file your return. The amount of these fees will be determined by the amount you owe. When you submit your income tax return at the end of the year, the IRS expects you to pay your initial tax due plus any costs.
Estimating taxes and paying them is normally a simple process, although everyone's tax situation is different. The specialists at Flyfin are available to assist you whether you have exceptional circumstances or simply need a bit extra help comprehending approximated tax. Our knowledgeable accountants will gladly assist you in determining if you need to make estimated tax payments and how many you need to make. We feel that disgruntled taxpayers should not be left to fend for themselves, and we are delighted to share our expertise with you.
