Tax Tips for Entrepreneurs: How to Pay Estimated Taxes

business taxes tax planning tax savings tax strategy Sep 16, 2022

As an entrepreneur, it's important to be aware of the deadlines and requirements for estimated taxes. Failing to pay estimated taxes can result in penalties and interest charges from the IRS. In this blog post, we will provide information on how to pay estimated taxes, including the deadline and payment methods. We also provide a few tips on how to make estimated tax payments easier throughout the year!

Estimated taxes for individuals are due four times per year: April 15, June 15, September 15, and January 15.

You can pay estimated taxes online on the IRS website or with a check or money order using the vouchers you received with your tax return.

Here is the IRS website >>>

If you're self-employed or have income from investments, you may need to pay estimated taxes. Estimated taxes are used to pay both income tax and self-employment tax.

If you don't pay enough tax throughout the year, you may be charged a penalty. The penalty is usually four percent of the unpaid taxes for that quarter. However, you may not have to pay the penalty if you've paid at least 90 percent of the tax you owe for the year. You also may not have to pay the penalty if your tax liability is less than $1000.

There are a few things you can do to make estimated taxes easier to pay throughout the year. One option is to have taxes withheld from other sources of income, such as dividends or pensions. You can also make estimated tax payments when you file your tax return for the previous year. This will help you avoid any underpayment penalties.

If you're unsure of whether or not you need to pay estimated taxes, it's best to consult with a tax advisor. They can help you determine if you need to make estimated tax payments and how much you should pay.

While estimated taxes can be a burden, it's important to stay on top of them to avoid any penalties from the IRS. By following these tips, you can make estimated tax payments easier throughout the year!