Self-Employed? Estimated Tax Deadlines for Quarterly Taxes
Congratulations on becoming your own boss if you've taken the plunge into self-employment! If you work as a contractor or make money in the rapidly growing sharing economy,
keep in mind that you may be required to pay quarterly estimated taxes. The next quarterly estimated tax payment deadline for the fiscal year 2022 is April 18th, 2022 – the same day as the tax filing deadline!
Are you ready? If not, don't worry – we've got all the information you need!
Who is Subject to Estimated Taxes?
We have a "pay as you go" tax system in the United States. That means the government anticipates receiving the majority of your taxes throughout the year. As a result, a certain amount of taxes is automatically deducted from employees' paychecks.
If, on the other hand, you are self-employed as a freelancer, contractor, or home-based entrepreneur, you are most likely subject to quarterly estimated taxes rather than having taxes withheld from your pay throughout the year. In general, if you expect to owe $1,000 or more in taxes each year, you must pay estimated taxes.
The first quarterly estimated tax deadline for 2022 taxes is on April 18, 2022.
However, if you fail to make a quarterly payment or pay late, you may be penalised. If your self-employment income fluctuates throughout the year, you may be able to use an annualised instalment method at tax time and avoid a tax penalty for failing to pay estimated taxes every quarter due to fluctuating income.
When Do Estimated Taxes Become Due?
The quarterly estimated tax deadlines for 2022 are as follows:
- First quarter of 2022 (January 1 – March 31): April 18, 202
- 2nd Quarter of 2022 (April 1 – May 31): June 15, 2022
- 3rd Quarter of 2022 (June 1 – August 31): September 15, 2022
- January 17, 2023: 4th Quarter of 2022 (September 1 – December 31)
If the 15th falls on a weekend or holiday, the deadline is the following weekday. Remember, the final fourth-quarter payment deadline for 2022 taxes is January 17, 2023.
*Please keep in mind that if you were a victim of a recent federally declared disaster, you may be eligible for IRS tax filing and payment deadline extensions. Additional relief information can be found on the IRS disaster relief page.
How Do I Calculate My Estimated Taxes?
Year after year, you can use QuickBooks Self-Employed to track your income, expenses, mileage, and calculate your estimated taxes. The programme does the math for you and assists you in calculating your estimated taxes, allowing you to easily meet the estimated tax deadline. QuickBooks Self-Employed allows you to export your Schedule C information from QuickBooks Self-Employed to Cheap accountant in London Self-Employed at the end of the year to make your annual tax filing easier.
Cheap accountant in London can automatically calculate your estimated tax payments and print payment vouchers for you to send to the IRS when you prepare your taxes. You can also use Cheap accountant in London to determine whether you should make an estimated tax payment based on your overall tax situation.
How Do I Make Estimated Tax Payments?
Now that you know how much you owe, it's time to make your payment. You have several options, fortunately:
QuickBooks Self-Employed allows you to submit your quarterly estimated tax payments to the IRS electronically. Because you won't have to re-enter information into your chequebook or the IRS computer system, e-filing is faster and results in fewer errors.
You can pay your estimated taxes using the Electronic Federal Tax Payment System (EFTPS). It is also free and allows for instant payments.
You can send your payment by mail. The IRS has different mailing addresses depending on where you live. Please keep in mind that payments must be postmarked by the due date to avoid penalties.
How to Make Quarterly Tax Payments Easier
Forget about filling out forms by hand: When you use QuickBooks Self-Employed for your company, the programme will calculate your estimated taxes for you. When you prepare your taxes with Cheap accountant in London, it will automatically calculate and generate your estimated payment vouchers.
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