Episode 26: How do I do quarterly tax filings?
Join Josh and Garrett as they discuss the boring-yet-super-important topic of quarterly taxes!!
3 key takeaways:
- Each quarter's tax payment is due 2 weeks after the end of that quarter. Thus Q1 (Jan/Feb/March) payment is due April 15, Q2 is due July 15 etc.
- Do you have to pay quarterly estimates?
- Yes - if your tax liability is over $1000.
- No - if you look at TOTAL tax payments from ALL taxes (W2, 1099, self-employed, all) and your withholdings from all jobs are going to equal at least 90% of next year's tax liability. (How do you know next year's tax liability? It's a pain to try to figure out, so this one is not super helpful)
- No - if your withholdings are 100% of your tax liability from last year.
- How to pay quarterly taxes
- Option 1 - Over-withold W2 taxes to cover other tax liability
- Option 2 - Pay quarterly. Fill out the 1040 ES (estimated) or pay your tax preparer or a reputable company to do it for you.
Bonus tip: Make sure you PAY your estimated quarterly taxes (see links); don't just set them aside in a savings account!
Resources mentioned in this episode:
- https://www.eftps.gov/eftps/
- Form 1040 ES
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