As many of you may already know, the deadline for making Estimated Quarterly payments is just in a few days – September 15th. But who all has to make these tax payments? Well, essentially every American who earns more then $1,000 in income needs to pay taxes throughout the year. However, anyone who works as a wage-earning employee will have these taxes automatically deducted from their paychecks.
Therefore, if you own a business, are self employed, work as an independent contractor, or if you make any other money on the side, then you need to make estimated tax payments four times per year. You will need to make payments using IRS Form 1040ES, and you want to make sure to pay the correct amount of you could face penalties at the end of the year.
If you have never made a quarterly payment before, or if you are confused about business taxes then you should probably seek out help from a tax professional or accountant. Alternatively, many tax programs like QuickBooks for businesses can prepare and file the appropriate forms.