Just a little reminder….🤓⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Due date: Monday, September 16th, 2019
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Remember, you are required to withhold at least 90 percent of your current tax obligation or 100 percent of last year’s obligation. A quick look at last year’s tax return and a projection of this year’s obligation can help determine if a payment is necessary. Here are some other things to consider:⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Avoid an underpayment penalty. If you do not have proper tax withholdings during the year, you could be subject to an underpayment penalty.
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Self-employed need to account for FICA taxes. Remember to account for your Social Security and Medicare taxes as well. Creating and funding a savings account for this purpose can help avoid the cash flow hit each quarter when you pay your estimated taxes.⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Don’t forget state obligations. With the exception of a few states, you are often also required to make estimated state tax payments if you’re required to do so for your federal taxes. Consider conducting a review of your state obligations to ensure you meet these quarterly estimated tax payments as well.⠀⠀⠀⠀⠀⠀⠀⠀⠀