How to Calculate and Pay Your Quarterly Estimated Taxes
How to Calculate and Pay Your Quarterly Estimated Taxes

$69.99 10 Sections 10 Lessons

Course Description

Estimated tax is a tax payment made four times a year based on your reported income for the quarter. Small business owners, freelancers, and independent contractors are the most likely to be required to pay taxes quarterly because they do not have taxes deducted from their paychecks in the same way that regular employees do. Taxes can be estimated for any taxable income that isn't subject to withholding. Earned income, dividend income, rental income, interest income, and capital gains are all examples of this.

Course Content

Introduction: How to calculate and pay your quarterly estimated taxes

If you run your own business, you will almost certainly have to make estimated tax payments. Estimated tax is used to pay income tax and self-employment tax. A penalty may be imposed if you do not pay enough tax through withholding and estimated tax payments.
Introduction: How to calculate and pay your quarterly estimated taxes

Who is required to pay estimated taxes

Generally, you are required to pay estimated taxes if you think you will owe at least $1,000 in tax for the current year. This lesson breaks down in detail who is and isn’t required to pay estimated tax for the current year.
Who is required to pay estimated taxes

Who is not required to pay estimated taxes

Some business owners may not be required to pay estimated taxes for one reason or another. This lesson breaks down in detail who is not required to pay estimated taxes.
Who is not required to pay estimated taxes

How to calculate your quarterly estimated tax payments

There are several ways business owners can determine how much to pay in estimated taxes each quarter. After watching this lesson, you will know your options for calculating and paying your quarterly estimated taxes.
How to calculate your quarterly estimated tax payments

How to set aside quarterly estimated taxes monthly

The best way to make sure you have enough money to pay your estimated taxes when they are due is to set money aside each month. It’s a lot easier to part with $1,000 a month than it is to come up with 3 or 4 thousand dollars at one time the month your payments are due. Putting money aside isn’t complicated, and this lesson will show you how uncomplicated it is.
How to set aside quarterly estimated taxes monthly

Quarterly estimated tax due dates

Technically, a quarter is every three months. However, the IRS counts quarters a little differently. Watch this lesson to know exactly when your quarterly tax payments are due.
Quarterly estimated tax due dates

How to pay your estimated taxes

This lesson covers the different ways to pay your estimated taxes.
How to pay your estimated taxes

What happens if I don’t pay my estimated taxes?

There are consequences for not paying your estimated taxes. Penalties and interest will be assessed if quarterly payments are not made or if they are late. If you wait until the end of the year to file and pay your taxes, you risk running into other financial problems if you don't set aside enough money to cover your taxes for the year.
What happens if I don’t pay my estimated taxes?

Don’t forget your state estimated taxes

We sometimes tend to forget that we are also required to pay state quarterly estimated taxes. States that do not impose an income tax on their citizens are exceptions. Learn a quick way to determine how much to pay in state estimated taxes.
Don’t forget your state estimated taxes

A Live Demo Showing How To Use The Calculator

A Live Demo Showing How To Use The Calculator - If your income significantly fluctuates each month, or if you would like your estimated payments to be as accurate as possible, your best option is to calculate your estimated payments each quarter based on your income to date. In this lesson, you will learn how to use the accompanying calculator to calculate your taxes.
A Live Demo Showing How To Use The Calculator