We would all agree that April Tax Day is one of the most dreaded days of the year. Those who are self-employed not only dread the April deadline but a variety of other deadlines throughout the year as well. When you are self-employed you are required to submit quarterly tax filings four times throughout the year. With that said, the team here at Tax Alternatives wants to share some important insight about the dreaded tax filings that self-employed business owners face year after year.
What Are Quarterly Tax Filings?
Tax deadlines can be quite intimidating and challenging for many people. It is important to understand what these quarterly payments are, how and when you should pay them and if you need to file them at all. Those who are employed by others have the required taxes taken out of the paychecks by their employers and have nothing further to do with the process throughout the year. However, those who are self-employed (1099 workers) are accountable for filing and paying their own taxes since you typically do not withhold the required taxes from your own paychecks.
Quarterly tax filings and payments are typically estimated and are paid to the IRS four times per year (each quarter) rather than just once during the infamous April tax month. The payments are calculated based upon the current year’s estimated income. If you make a profit in your self-employment business, you will be required to pay taxes. If, on the other hand, you do not make a profit but actually have more expenses than income, then you will not be required to pay quarterly taxes.
When it comes time to submit your quarterly tax filings and payments you can always rely upon our team of professionals here at Tax Alternatives to get the job done for you. Our team of skilled tax specialists stands ready to serve you and to provide you with all the assistance you need when it comes time to file and pay your taxes. We begin with the required Form 1040-ES and calculate what you actually owe. This form requires you to use your expected adjusted gross income in order to properly estimate the amount of taxes that will need to be paid. We then use the appropriate tax rate schedule to determine the amount owed. Once we determine what you owe for the year, we divide that total number by four to calculate your quarterly taxes to be paid. The form along with your payment is then mailed to the IRS. The process is then repeated in each of the following quarters.
Just a Reminder
If you are self-employed and owe more than $1000 in taxes for the year and choose not to pay your quarterly taxes, you will be given a penalty from the IRS. Unless you have had an unusual scenario during the year, retired or became disabled some time during the taxable year which would allow you to avoid the penalty, you will be required to submit your quarterly tax filings and payments. The team here at Tax Alternatives is on hand to answer any questions you may have about avoiding penalties and any other self-employed tax related issues or concerns.
Bottom Line
If you are self-employed and are in the market for a reputable tax preparation and filing team, then look no further than the folks here at Tax Alternatives. Our team of tax specialists is steadfast in their commitment to meet the individual needs of all our valued clients and to provide the highest quality tax services at prices that are truly affordable. For all your self-employed quarterly tax filings put your trust into the hands of some of the absolute best in the industry. For more information on our top-rated services, be sure to give a shout out to one of our team members today. We look forward to serving you and to handling your tax filings for your self-employed business quarter after quarter, year after year!
