Dear taxpayer, winter is coming! Well, more like autumn, & also the deadlines for:
- Federal Tax returns on October 15
- Employer Q3 tax return on October 31
- Q3 estimated tax payments due date was on September 15
Should you pay Quarterly estimated taxes?
You may, if:
- You’re self-employed Your taxes are not withheld from your paycheck by your employer
Also, you should make payments if both of these apply:
- You expect to owe at least $1,000 in taxes for the year 2021, after subtracting your withholdings and tax credits.
- You expect your withholdings and tax credits to be less than the smallest of:
- 90% of the tax to be shown on your 2021 tax return OR
- 100% of the tax shown on your 2020 tax return, covering all 12 months of this year.
Which types of income normally pay estimated taxes?
Those not subject to withholding, such as:
- Cash or contractor payments,
- Interests, dividends, capital gains,
- Rental income.
Are there underpayment penalties?
Yes! Better to keep those payments current to avoid them.
To see if you owe a penalty, use Form 2210.
How to calculate my estimated taxes?
You can check Publication 505 to know more about estimated tax rules. Then, file Form 1040-ES for individuals or Form 1120-W for Corporations.
How to easily calculate my quarterly estimated taxes?
The easiest way is with the help of a dedicated IOOGO Accountant.
Also, if you’re an IOOGO Accounting annual subscriber, you get the Federal Tax Filing service included in your package!