Did you know Independent contractors, freelancers or self-employed workers who have to pay taxes more than once a yearIn fact they have to make estimated payments on four dates every 12 months.
Estimated payment dates for this year were set 15 April, then 15 June, 15 September and the next 15 January,
Having so many tax due payment dates can easily Taxpayer forgets and/or misses the deadline for making estimated tax paymentsWhich one? could lead to they have to pay a punishment,
Independent contractors, freelancers and self-employed individuals Those who don’t expect to pay more than $1,000 in taxes don’t have to pay them every quarter.,
What do quarterly estimated taxes cover?
Employers withhold taxes from their employees on each paycheck and deposit those funds with the IRS.So essentially it represents quarterly estimated taxes for self-employed individuals.
This way a taxpayer would have paid his income tax and self-employment taxes throughout the year, as well as once a year like a regular taxpayer, with the possibility of reducing his tax bill by taking business write-offs.
Here’s What You Should Do If You Miss the Estimated Tax Payment Date
Taxpayers are expected by the IRS to make their payments by each deadline, and Any person who misses the quarterly date should make the payment at the earliest And don’t wait until the next quarter.
Penalty or penalty for short payment of your taxes This will be calculated based on how much is owed and how long it took you to finally pay,
The IRS will typically impose a 0.5% penalty on the entire amount owed by the taxpayer.which increases with every partial or full month that the taxes are not paid, having a limit of 25%,
The payment deadline will also apply for state taxes if they apply to the individual’s state of residence.