It’s quarterly tax time (also called estimated taxes)! If you are self employed, you may need to pay estimated taxes each quarter.
When are they due?
– Quarter 1 payment (January 1 to March 31) – April 17
– Quarter 2 payment (April 1 to May 31) – June 15
– Quarter 3 payment (June 1 to August 31) – September 17
– Quarter 4 payment (September 1 to December 31) – January 15
(yep, you may notice that’s not really every quarter. The IRS is set up for payments for 3 months, 2 months, 3 months and 4 months.)
How to make a payment?
You can make a payment by completing the Form 1040-ES (Estimated Tax for Individuals) and mail it to the IRS with a check. You also have an option to pay online via the IRS payment portal.
How much do I pay?
At a high level, your estimated taxes are (income minus business expenses) x tax rate.
If you would like assistance in calculating your payment, contact me. And if you can’t make a payment this quarter, it is ok. You can set aside and make an additional payment with your Quarter 3 payment in September.
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