McVay Business Services - Accounting & Tax Services Pensacola, FL
Perhaps you’ve taken the plunge into self-employment and added the luxury of being your own boss and working at your home office in your PJs. Whether you’re working as a contractor or enjoying making money in the fast-growing sharing economy don’t forget you may need to pay estimated taxes and the upcoming 3rd quarter estimated tax deadline is September 15th.
Are you prepared? If not, don’t worry. I have tips to help you. 850-725-5696. www.VirtualBookkeepersUSA.com
Who is Subject to Estimated Taxes?In the United States since we have a “pay as you go” tax system the government expects most of your taxes throughout the year. Employees have a certain amount of taxes automatically withheld from their paychecks.
On the other hand, if you are self-employed as a freelancer, contractor, or home-based entrepreneur you most likely don’t have taxes withheld from your pay throughout the year and are subject to estimated taxes. In general, you are expected to pay estimated taxes if you expect to owe $1,000 or more for your taxes.
When Are Estimated Taxes Due?The good news is the IRS has a schedule to help you figure out when you need to pay.
Here’s the schedule:
How Can I Figure Out My Estimated Taxes?If you use QuickBooks Self-Employed for your business, the program does the math for you and helps you figure out your estimated taxes so you can easily make the estimated tax deadline. At the end of the year, QuickBooks Self-Employed gives you the ability to export your Schedule C information from QuickBooks Self-Employed to TurboTax to make your annual tax filing easier.
When you prepare your taxes at tax-time, TurboTax can also automatically calculate your estimated tax payments and print out payment vouchers for you to send in to the IRS.
How Can I Pay Estimated Tax Payments?Now that you know what you owe, it’s time to get your payment in. Fortunately, there are a few options:
Do you pay quarterly estimated taxes? Do you have any additional tips for those just starting their own businesses? 850-725-5696
Mike McVay, Tax Accountant Blog
Certified QuickBooks ProAdvisor & Licensed Tax Accountant Pensacola, FL
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