09/13/2024
Estimated Taxes are paid on the below business days. However, if the date falls on a weekend or holiday, the following business day is the actual due date (and withdrawal date if payment is scheduled ahead).
1st: April 15th, 2nd: June 15th, 3rd: September 15th, 4th: January 15th
Reminder: if you expect to owe less than $1,000 in tax liability this year, you don't have to make estimated tax payments.
Here's how to calculate your estimated tax payments if:
Expected to be the same throughout the year:
1. First figure out what your expected taxable income, deductions, credits for the current year (you can use laat year's if you have last year numbers to go by).
2. Divide that number by 4
3. Go to irs.gov to make the payments, AND your states' tax website
Your first time making estimated tax payments as self-employed individual (congratulations!):
1. Figure your income taxes owed (taxable income, deductions and credits)
2. Add self employment taxed to be owed (15.3%)
3. Divide that number by 4
4. Go to irs.gov to make the payments, AND your states' tax website
Your first time making estimated tax payments as a small business owner (congratulations!), use the Annualized Method:
1. Figure the revenue of the past quarter only
2. Figure the business expenses of the same past quarter only
3. Revenue less expenses of that same quarter is calculated
4. Multiply your tax % to that net income for the quarter only
Jan 1 through Mar 31 - due date April 15
Apr 1 through May 31 - due date Jun 15
Jun 1 through Aug 31 - due date Sept 15
Sep 1 through Dec 31 - due date Jan 15 of next year
5. Repeat for each quarter
This method could be best for people whose income fluctuates substantially from year to year, as well as from quarter to quarter. It makes it possible to avoid underpayment and corresponding penalties—and a potentially high quarterly tax bill when you didn't earn enough to pay it.
As always, consult with your tax accountant for your respective calculations!
Contact Info
www.trustyourbooksllc.com
(929) 257-1049
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