Estimated Taxes Made Simple!
Hello Business Minded Mama’s! On today’s episode, I am breaking down what you need to know about estimated tax payments. All of these facts are general and you should always consult with your tax professional or CPA to get a better understanding of what you should be paying
Who: Entrepreneurs who have business income
When: April 15th, June 15th (both adjusted to July 15th in 2020), September 15th and January 15, 2021
*Note* You can pay these more frequently if you would like (i.e. monthly)
How much: Quickest way to get your estimate is to take the prior year tax liability and divide it by four. My recommended method….consult with your tax professional or use your accounting software to get a more accurate estimate for your current year!
How to pay: Mail a check or pay online
If you do not pay enough in estimated taxes throughout the year, there are interest penalties that you will pay. Please keep that in mind as you calculate your estimated tax payments.
For more information on estimated taxes, visit the IRS website.