Otherwise known as estimated payments, quarterly taxes are supposed to be paid by most businesses and some individuals depending on the IRS requirements. This can be a pain as rather than once a year, you have to plan and allocate the necessary information to pay your taxes four times a year. If you are not able to pay your estimated taxes for whatever reason, you or your business will have to pay a hefty penalty. Estimated taxes are often time-consuming to plan out and confusing to navigate through the different requirements and legislation. But don’t stress! We at Intentional Accounting will help you traverse and understand the basics of quarterly taxes!
What Are Quarterly Taxes?
Quarterly taxes are payments that self-employed individuals and some business owners must make to the IRS four times a year. These taxes are paid on income that is not subject to withholding, such as self-employment income, rental income, interest, dividends, and other sources of revenue. Individuals and businesses can avoid underpayment penalties and stay current with their tax obligations by paying taxes quarterly. The quarterly tax due dates are usually April, June, September, and January of the following year. If you’re unsure whether to pay quarterly taxes, it’s best to consult us at Intentional Accounting to ensure compliance with IRS regulations.
Do You Need to Pay Quarterly Taxes?
You should check the IRS’s page to determine whether you must pay taxes. Here are some of the requirements:
- Individuals, such as sole proprietors, partners, and S corporation shareholders, generally need to make quarterly tax payments if they anticipate owing $1,000 or more when they file their return.
- Corporations or businesses must pay quarterly tax payments if they expect to owe more than 500$ when their return is filed.
When Do You Need to Pay?
There are 4 dates that you need to pay your quarterly taxes by, which correspond with each specific time period:
Payment Period Due Date
| January 1 – March 31 | April 15 |
| April 1 – May 31 | June 15 |
| June 1 – August 31 | September 15 |
| September 1 – December 31 | January 15 of the following year |
How to Save Money
There are multiple loopholes as well as ever-changing tax legislation that impact how much taxes you have to pay. Intentional Accounting knows the ins and outs of the newest tax legislation and tax strategies, so you do not have to pay a dollar more than you have to each quarter. The money you save can be reinvested into your savings or business to help grow your finances. Every taxpayer’s plan will be different based on what industry you or your company is in, which is why we have unique long-term tax planning solutions for each client. It’s best to get ahead of your taxes so the burden of each quarterly tax due date is less and less financially draining.
Let Intentional Accounting Save You Money on Quarterly Taxes
Our team of experienced professionals is dedicated to finding you every possible deduction and credit, ensuring that you pay the least amount of tax required by law. By taking a proactive and intentional approach to accounting, we can help you strategically plan for your quarterly tax payments, maximize your tax savings, and ultimately keep more money in your pocket. Don’t let taxes eat into your hard-earned income – let Intentional Accounting be your trusted partner in saving you money on quarterly taxes.
