If you’ve taken the exciting leap into self-employment, congratulations on being your own boss! However, it’s essential to remember that as a freelancer or contractor, you may be responsible for paying quarterly estimated taxes. And guess what? The next deadline is right around the corner on April 15, 2024!
Don’t worry if you’re not prepared just yet. We’ve got all the information you need to know!
Who is Subject to Estimated Taxes?
In the United States, we have a “pay as you go” tax system, which means the government expects most of your taxes throughout the year. Typically, employees have taxes automatically withheld from their paychecks. However, if you’re self-employed as a freelancer, contractor, or home-based entrepreneur, you most likely don’t have taxes withheld from your pay and are subject to quarterly estimated taxes.
In general, if you expect to owe $1,000 or more annually for your taxes, you’re expected to pay estimated taxes. So mark your calendars because the first quarterly estimated tax deadline for 2024 is on April 15, 2024.
When Are Estimated Taxes Due?
Let’s dive into the specific deadlines for your quarterly estimated tax payments in 2024:
- 2024 1st Quarter (January 1 – March 31): April 15, 2024
- 2024 2nd Quarter (April 1 – May 31): June 17, 2024
- 2024 3rd Quarter (June 1 – August 31): September 16, 2024
- 2024 4th Quarter (September 1 – December 31): January 15, 2025
If the 15th falls on a weekend or holiday, the due date will be the next weekday. Keep these deadlines in mind to avoid any penalties for late payment.
How Can I Figure Out My Estimated Taxes?
Calculating your estimated taxes can feel overwhelming, but fortunately, there are tools available to make it easier. You can use QuickBooks Self-Employed to track your income, expenses, mileage, and estimate your taxes year-round. The program does the math for you and even allows you to export your Schedule C information to TurboTax Self-Employed, making your annual tax filing a breeze.
Additionally, TurboTax can automatically calculate your estimated tax payments and provide you with payment vouchers. You can also use TurboTax TaxCaster to get an estimate of your overall tax picture and determine whether you should make an estimated tax payment.
How Can I Pay Estimated Tax?
Now that you know how much you owe, it’s time to make your payment. Thankfully, you have several options:
- QuickBooks Self-Employed allows you to electronically file your quarterly estimated tax payments to the IRS. E-filing is fast, convenient, and results in fewer errors.
- Use the Electronic Federal Tax Payment System (EFTPS) to pay your estimated taxes. This method allows for instant payments and is free to use.
- Mail in your payment. The IRS provides specific mailing addresses based on your state. Remember to postmark your payment by the due date to avoid any penalties.
Tips on Making Your Quarterly Tax Payments Easier
Here are some tips to simplify the process of making your quarterly tax payments:
- Say goodbye to handwritten forms by using QuickBooks Self-Employed. The program automatically calculates your estimated taxes, and TurboTax can generate your payment vouchers when you’re ready to file your taxes.
- Keep a record of all your estimated tax payments. You’ll need this information when you file your taxes.
Conclusion
As a self-employed individual, staying on top of your quarterly tax payments is crucial to avoid penalties and ensure a smooth tax-filing process. Remember the upcoming April 15 deadline and mark your calendars for future deadlines throughout the year. Utilize tools like QuickBooks Self-Employed and TurboTax to simplify the calculations and streamline your tax payment process.
If you have any additional questions, consult the IRS website or seek professional advice from a tax expert. Stay proactive and responsible with your tax obligations, and enjoy the freedom and rewards of being your own boss!
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