Six tax tips on estimated tax payments

Six tax tips on estimated tax payments

Estimated taxes must be paid as you receive or earn any income during the year. If you are an employee, your employer usually withholds your taxes based on the data provided in the form W4. If you are 1099 contractor or you are running your own business, you are required to estimate taxes due and remit to the IRS.

If at the time of tax filing, the amount due is more than your estimated taxes paid you will be charged penalties and interest would continue to accrue until the balance is paid. Therefore, all business owners, self-employed and contractors should ensure you estimate your quarterly income and remit taxes  each quarter.

Below are six tax tips on estimated taxes

C Corporations have to make estimated payments if they expect to owe at least $ 500 or more when the return is filed.

(Special rules apply to farmers and fisherman – Publication 505 has more information, source


Posted In: Tax

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