If you’ve always been an employee and are just starting out on your own, you’ve probably started to hear more about this “quarterly taxes” thing. And with good reason and it’s something you need to take seriously for sure.
Here are a few reasons why you may need to make estimated quarterly tax payments:
Your employer doesn’t withhold taxes and you incurred a tax liability from the prior year.
If you expect to have to pay more than five hundred dollars at tax time and you are filing as a corporation.
If you owed taxes more taxes from the previous tax year
If you file as a Partnership, an S-Corp, or as a sole Proprietor, and you project to owe more than a thousand dollars in taxes at the end of the year.
To file quarterly taxes, you’ll need to use form 1040-ES. The dates for filing and their related quarters are:
Jan. 1 – March 31: Due April 15
April 1 – May 31: Due June 16
June 1 – August 31: Due September 15
Sept. 1 – Dec. 31: Due January 15 the following year
Do you have the support you need to manage your small business bookkeeping?
Contact us to schedule an appointment to speak with a local small business advisor.