I Need to do What? Since When?
Author: Keith Huggett
Do you have to pay estimated taxes? Yes? No? Are you sure? If you are self-employed or own an S-Corporation than you are most likely paying estimated taxes. Just to clarify things, lets explain what estimated taxes are.
Estimated taxes are not an additional income tax. They are taxes you pay throughout the year in place of paying a lump sum when you file your tax return. You make your tax payments four times a year:
- April 15, 2014
- June 16, 2014
- September 15, 2014
- January 15, 2015
Estimated taxes cover your net earnings from self-employment, profits from an S-corp, and any earnings not subject to withholding such as capital gains or dividends.
If you happen to be a little short on your estimates, you can accrue penalties. The way to avoid You can avoid this penalty if your 2014 estimated taxes are 100% of your 2013 tax bill (110% if your adjusted gross income in 2013 was over $150,000, or $75,000 if married filing separately). Also, there will be no penalty if your underpayment is less than $1,000 or your estimated tax payment is at least 90% of your final 2014 tax bill.
The tax specialists at The Tax Office, Inc., can help you figure out your estimated tax payments. If you have any tax questions please contact us now.
