Updated: Sep 24
It's week 2..time for the next tip! Preparing Q4 Estimated Taxes.
The best way to stay on top of your taxes is making estimated payments and tracking your business expenses.
According to the IRS, if you expect to owe more than $1,000 in taxes within the year, then you should be paying estimated taxes to avoid having a large tax bill at the end of the year.
How to calculate your Estimated Taxes
Pull your Profit & Loss (P&L) Statement to review your sales and expenses for September-December
Use this Quarterly Estimated Calculator to figure out your estimated taxes for Q4.
Quarterly Estimated Tax Payment Due Dates:
Q1 - April 15th (Covers Jan-Mar)
Q2 - June 15th (Covers Apr-May)
Q3 - September 15th (Covers Jun-Aug)
Q4 - January 15th (Covers Sep-Dec)
Insider tip: Open a savings account to save 20%-25% of your profits every month for taxes. This amount will help to cover the tax bill due to the IRS and State.
How to Pay Your Estimated Taxes:
The best and EASIEST way to pay your taxes is using IRS Direct Pay.
Now you should feel confident calculating and paying your quarterly taxes!
The easiest and time-saving way to do your bookkeeping, is to have us do it for you.
Stay tuned for next week's tip on Finalizing End of Year Payroll.