Even more so than the requirements and penalties for underpaying taxes, no one wants a giant tax bill to figure out how to pay at the end of the year. It's so much better to pay as you go and stay out of the hole. Anyone getting into business for themselves or working as an independent contractor should estimate their tax liability and make quarterly payments to avoid surprises. When in doubt, find out.
IRS Tax Reform Tax Tip 2019-109, August 13, 2019
Small business owners, self-employed people, and some wage earners should look into whether they should make estimated tax payments this year. Doing so can help them avoid an unexpected tax bill and possibly a penalty when they file next year.
Everyone must pay tax as they earn income. Taxpayers who earn a paycheck usually have their employer withhold tax from their checks. This helps cover taxes the employee owes. On the other hand, some taxpayers earn income not subject to withholding. For small business owners and self-employed people, that usually means making quarterly estimated tax payments. Read On
IRS Tax Reform Tax Tip 2019-109, August 13, 2019
Small business owners, self-employed people, and some wage earners should look into whether they should make estimated tax payments this year. Doing so can help them avoid an unexpected tax bill and possibly a penalty when they file next year.
Everyone must pay tax as they earn income. Taxpayers who earn a paycheck usually have their employer withhold tax from their checks. This helps cover taxes the employee owes. On the other hand, some taxpayers earn income not subject to withholding. For small business owners and self-employed people, that usually means making quarterly estimated tax payments. Read On