Being your own boss is something many people dream of. The idea of no longer having to live according to someone elseâ€™s rule book and having the freedom to work when you want is a very appealing prospect. Taking the plunge into self-employment is something that is very attractive for those looking to venture out on their own and take their career into their own hands. But while this idea can be very romantic and alluring, it is important to keep in mind that there are different tax requirements for self-employed individuals, specifically in regards to paying estimated quarterly taxes. If you own your own business, hereâ€™s what you need to know about this from your Denver accountant.
Who Has to Pay Estimated Taxes
According to the IRS
, all US Citizens, residents of Puerto Rico and all US territories, as well as nonresident aliens are required to pay quarterly taxes if you expect to owe at least $1,000 in taxes for the year after subtracted withholding and refundable credits. Individuals who expect their withholding and refundable credits to be less than the smaller of 90% of the tax shown on your 2018 tax return or 100% of the tax shown on your 2017 tax return. You are not required to pay estimated tax if you had no tax liability for 2017 or if your total tax was zero and you did not need to file a tax return.
When are Estimated Quarterly Taxes Due
Most individuals work for someone else, and as a result their taxes are automatically deducted from their paycheck every pay period. But as a self-employed individual, you will no longer have this luxury and will need to save a portion of every dollar you earn in order to be able to pay your tax bill. As a self-employed individual, you will be required to pay taxes every three months. The dates for which these taxes are due are April 15th for the first quarter, June 15th for the second quarter, September 15th for the third quarter, and January 15th of the next year for the fourth quarter.
It is important to stay up to date on your tax responsibility as a self-employed individual, as the IRS may penalize individuals who do not fulfill their obligations on time. If your are thinking about filing your quarterly taxes in the Denver area, there is no better option than going with Bloch, Rothman, and Associates. Whether you are dealing with a large estate tax bill or are just looking to get the biggest possible tax return for you and your family, we are your preferred choice for tax accountants.
We are a full service Denver and Aurora accounting firm that offers personal and affordable accounting and tax services for both individuals and businesses. We pride ourselves on providing the best possible customer service and advice to our clients in the industry. Contact us today
and we will be happy to help you receive the highest return possible.