Episode 40: All About Quarterly Estimated Taxes

Federal Quarterly Estimated Taxes can be tricky. You may not be sure if you’re required to pay them, how much or when to pay, or even how to make the payments… but that’s what we’re here for! Today, Julie talks about all things E.T.P. (Estimated Tax Payments) and how to navigate them.

 Episode Highlights:

• Who is required to make Federal Quarterly Estimated Tax Payments?
  • If you are self-employed, a house-hold employer (nanny, landscaper, etc.), or have a high income household
  • If you're going to owe above $1,000 in taxes for the following year, you're going to need to pay E.T.P.s
• How much should you pay?
  • If your AGI (Adjusted Gross Income) is more than $150,000 per year, you have to pay 110% of the previous years taxes
  • Usually, you pay either 90% of the tax you're going to owe for the following year OR 100% of the tax from the previous year
• When are Estimated Tax Payments due?
  • April 15th for Q1, June 15th for Q2, September 15th for Q3, and January 15th of the following year for Q4

Links & Resources:
GreenOak Accounting
Therapy For Your Money Podcast
IRS Form 1040-ES for Estimated Tax Payments
TFYM Episode 13 - Profit First with Mike Michalowicz