If you expect to owe money on your tax return, you should pay estimated taxes. If you don’t, the IRS can fine you on the money you owe, causing you to owe EVEN MORE money, which we don’t want at all!
The IRS likes for you to pay by quarter. Here are the due dates:
January 1- March 31
- Due April 15th
April 1- May 31
- Due June 15th
June 1- August 31
- Due Sept. 15th
September 1- December 31
- Due January 15th
My advice is to pay in electronically, and monthly. It needs to be a regular event for you, and doesn’t need to be such a hard hit on your bank account.
The amount that you need to pay in is dependent on how much money you bring in that quarter, as well as your overall personal tax situation. Your bookkeeper and CPA need to work together to let you know how much money to pay in.
Do you need a bookkeeper to help you figure out your net income for your business?