For a majority of Americans, taxes are withheld from their checks each and every time they get paid. These withholdings cover a portion of what is expected to be turned into the Internal Revenue Service, in addition to what an employer contributes. At the end of each year, these figures are analyzed and then an individual or couple is awarded a refund for paying in too much during the course of a year or they end up owing extra. Typically, this is how the taxes are handled throughout checks and withholdings but for some individuals, paying estimated taxes throughout the year is required.
Estimated taxes are important for a variety of reasons. These help individuals to ensure they have enough contributed in to offset what they owe and aren’t faced with any surprises when they file in the spring. Fortunately, those who are required to make estimated tax payments are often made aware based on their current financial situations but may not be aware they could be penalized if these payments aren’t made on time.
One of the most common occurrences of having to pay estimated taxes revolves around those who are self-employed, sole proprietors, partners, and certain shareholders for corporations. In addition, individuals who have received a certain amount of winnings during a calendar year may also become subject to submitting quarterly tax payments.
If due, these payments are made each quarter to help both the IRS and individuals responsible for writing the checks. The benefits are that a huge lump sum doesn’t have to be created at one point in order to pay the due amount, but it may also be problematic as both the regular tax payment and first-quarter are due on the same day. Made quarterly, the payments have to be submitted to the proper authority prior to deadlines on or around April 15, June 15, September 15 and the following January 15 for those in need of contributing this year.
For those who are required to file estimated tax payments, not doing so can create issues - including a potential penalty. Typically, those who are anticipated to owe over $1,000 in taxes at the conclusion of a tax period should make estimates. Doing so can help to eliminate any potential hazards which may arise once a full year of tax information is analyzed.
The tax and financial experts
at Bloch Rothman and Associates are ready and willing to assist if you have questions regarding your current tax status, paying all currently required taxes, owed back taxes, or any other personal or corporate wealth management issues. In addition to providing a quality tax service, including navigating the intricacies of an audit, our group can also complete tax returns or answer any other factors associated with financial issues or concerns you may have. Serving in Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate or any other filings, don’t hesitate to contact us today. Available for all of your tax needs and filings, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and serving whatever your needs may be soon!