I fyouexpec tt ooweatl eas t$1, 000i nf eder ali nc omet axaf t ers ubt r ac t i ngyourwi t hhol di ngand c r edi t s , t henyous houl dal s obemaki ngquar t er l yes t i mat edt axpayment s . Thes ees t i mat edpayment s ar eus ual l ydueonApr i l 15t h( 1Q) , J une15t h( 2Q) , Sept ember15t h( 3Q)andJ anuar y15t h( 4Q) . I fyou don' tmaket hes er equi r edquar t er l yt axpayment sont i me, t henyouc oul df ac epenal t i esf r om t heI RS.
TheSoc i alSec ur i t yand Medi c ar et axesyounow havet opay—t oget hert hey’ r eof t en c al l ed t he s el f empl oymentt ax —c ur r ent l yr i ng i nar ound 15% ofyouradj us t ed gr os si nc ome( t hati s ,your i nc omeaf t erdeduc t i ons / exempt i ons ) .Keepi nmi ndt hatt he15% s el f empl oymentt axi saboveand beyondt hei nc omet axyou' veal wayspai d.Es s ent i al l y ,youres t i mat edt axesar eac ombi nat i onof whatyouowef ori nc ome,Soc i alSec ur i t y ,andMedi c ar et axes .
Toavoi danys ur pr i s es ,expec tt hati fyou’ r eear ni ngt hes ameamount( af t erdeduc t i ons )t hatyoudi dwhenyou wer eanempl oyee,you’ r egoi ngt opaymor ei nt axesnow t hatyou’ r es el f empl oyed.W hy?Wel l ,whi l eyou pai di nc omet axoutofever ypayc hec kasanempl oyee,yourempl oyerpai dhal fofanot hers etof t axes —Medi c ar eandSoc i alSec ur i t y .Now t hatyou’ r et hebus i nes sowner ,Medi c ar eandSoc i alSec ur i t yt axes ar e100% yourr es pons i bi l i t y .
I npr ac t i c e, SELFEMPLOYEDi ndi vi dual smi ghtnotneedt omakees t i mat edpayment si ft heyexpec tt oowel es s t han$1, 000ont hei rr et ur n.Cor por at i onsmi ghtnotneedt opayquar t er l yt axesi ft heyexpec tt oowel es st han $500att heendoft heyear . Sel f empl oyedi ndi vi dual swhofil emar r i edj oi ntandoneofyougetpar toft hei ri nc omet hr oughanempl oyer mus tr emembert hatyoumi ghtneedt opayaddi t i onales t i mat edt axesf oryours el f empl oyedi nc ome.Al t er nat i vel y , youc anadj us tyourW4t ohaveyourempl oyerwi t hhol dagr eat erpor t i onofyours al ar yandof f s etyour ot heri nc ome.
Thebas i cs t epst of ol l ow i fyouwantapr ec i s emeas ur eofyourquar t er l yt axdue: 1. Cal c ul at eyourt ot alexpec t edi nc ome 2. Appl yt axdeduc t i onst ogetyouradj us t edgr os si nc ome( AGI ) 3. Mul t i pl yyourAGIbyt her el evantt axr at et ofindyoures t i mat edi nc omet axowed 4. Rememberyourt ot alexpec t edi nc omef r om s t ep1?Us et hatt ot alexpec t edi nc omet o al s oes t i mat e t hes el f empl oymentt axesyou’ l lowef orSoc i alSec ur i t yandMedi c ar e 5. Addt oget heryoures t i mat edi nc omet axowedandyoures t i mat eds el f empl oymentt axes .That ’ syour es t i mat edt axf ort heyear 6. Takeyoures t i mat edt axf ort heyearanddi vi dei tbyf our( f ort hef ourquar t er soft heyear ) ;t hat ’ syour quar t er l yt axamount !
Ther ear eac oupl ewayst opayyourf eder al quar t er l yes t i mat edt axes : Getyour s el fapaymentvouc herandmai l t heI RSyoures t i mat edt axes . ( Sampl ees t i mat edt ax vouc herbel ow, t hey’ r ef oundatt heendoft he1040ESf or m)
Vi s i twww. di r ec t pay . i r s . gov( eas i es t )orwww. ef t ps . gov / ef t psands etuponl i nepayment s .
I fyou’ r edyi ngt ot al kt os omeoneatt heI RS( wei r d, butt oeac ht hei rown)youc anc al l i nyour payment .
I tc anbec onf us i ngt r yi ngt ofigur eouthow muc hmoneyneedst ogot owar dst axeseac hmont hor evenwhi c hf or m needsfil l edout .Quar t er l yt axpayment sdon’ thavet obes t r es s f ul .Weunder s t and youdon’ thavet i mef ort hehas s l es .Thatwhyweexi s t . Wes pec i al i z ei nal lt hi ng’ st axes ,under s t andyouri ndus t r yandwe’ r eher et ohel pyou,s oyouc an f oc usonwhatmat t er smos t–r unni ngyourbus i nes s . Ourt eam ofexper t swi l l wor kc l os el ywi t hyou t oens ur et hatever yt hi ngr unss moot hl yf r om s t ar tt ofini s h. Wec anhel pyoudevel opas af e,r el i abl ees t i mat eofwhatyouneedt opayt oavoi dpenal t i es . I tdoes n’ tgetanyeas i ert hant hi s !
Manybus i nes s eshaves ur vi vedt hec r i s i st hi syearwi t hl oanss uppl i edt hr ought heU. S.Smal lBus i nes sAdmi ni s t r at i onl i k et hePayc hec kPr ot ec t i onPr ogr am ( PPP)andt heEc onomi cI nj ur yDi s as t er Loans( EI DL) .I t ’ snat ur al t obec onc er nedabouthavi ngt opayes t i mat edt axesont hes el oans , butt he goodnewsi st hati fal oani sf or gi ven, i tdoesnotc ountast axabl ei nc ome. Ther ef or e, i fyoufil et ohave t hes eemer genc yl oansf or gi ven,andt heywon’ tc ountasi nc omeonyourt axr et ur n,t henyoudon’ t havet opayquar t er l yt axesont hem.I tal ldependsonhow t hey’ l ls how uponyourfinalt axr et ur n. Theonl ydowns i dei st hati ft hef or gi venl oansdon’ tc ountasi nc ome,youc an’ tc l ai mt axdeduc t i ons f ort hewayyouus edt hem. Bus i nes sexpens esmadewi t hf or gi vengover nmentl oansar enotdeduc t i bl e. However , t hi smayc hangewi t hc omi ngl egi s l at i on. Wewi l l k eepyoupos t ed.
Sof ar , t heI RShasnotc hangedt her egul ar . Her ear et hees t i mat edquar t er l yt axduedat esf or2021: Fi r s tquar t erdeadl i ne: Apr i l 15 Sec ondquar t erdeadl i ne: J une15 Thi r dquar t erdeadl i ne: Sept ember15 Four t hquar t erdeadl i ne: J anuar y15 Cor por at i onswi l l payt hei res t i mat edquar t er l yt axesont he15thdayoft he4th, 6th, 9th, and12th mont hoft hei rfis c al year . Thatmeanst hati fac or por at i onf ol l owst hec al endaryear , t hei rdat eswi l l bet hes ameasi nt hei ndi vi dual deadl i nes , exc eptf ort hef our t hquar t er .
I fyour eal i z eyou’ vemi s s edaquar t er l yes t i mat edt axpayment , mak epl anst opayi tass oonaspos s i bl e. Youmi ghtendupbei ngfinedf oryourl at epayment , s ot hes af es tt hi ngt odoi st omak et hepay mentass oonasyour emember .Somemi ghtas s umet heyc anpaymul t i pl equar t er satonc eoreven wai tunt i l t heendt opayi tal l . However , anypayment smadel at ert hant hequar t ert heyc or r es pondt o maybes ubj ec tt oafine.
TheI RSr equi r esr egul art axpayment st hr oughoutt heyear . Ski ppi nganes t i mat edt axpaymenti sonl y agoodi deai fyou’ veal r eadypai denoughi nes t i mat edt axeswi t hyourpr evi ouspayment s .