Description

About the Guest(s):

Kerrie Beene: Kerrie Beene is a CERTIFIED FINANCIAL PLANNER™ at the Root Planning Group. With extensive experience in personal finance, Kerrie is dedicated to helping clients navigate their financial journeys. She specializes in providing practical advice on budgeting, investing, tax planning, and more. Her approach is centered around making complex financial topics understandable and actionable for everyone.

Episode Summary:

In this insightful episode of the Money Roots podcast, Certified Financial Planner Kerrie Beene takes the spotlight to delve into the essential topic of estimated tax payments. With her wealth of knowledge, Kerrie provides a thorough breakdown of what estimated tax payments are, who needs to make them, and the crucial timelines involved. Whether you're self-employed, an investor, or earning rental income, this episode is packed with valuable insights to help you stay ahead of your tax obligations.

Kerrie begins by explaining the concept of estimated tax payments, highlighting their importance for individuals who have income not subject to withholding, such as freelancers, landlords, retirees, and those with side gigs. She discusses the general rule of thumb for those who need to make these payments, emphasizing the significance of being proactive to avoid any surprises during tax season. Kerrie also outlines the quarterly deadlines for estimated payments and the potential penalties for underpayment, stressing the benefits of staying on top of your tax game.

Moving forward, Kerrie provides actionable steps on how to determine the amount you need to pay and offers multiple methods for making these payments. Whether you're paying online, by mail, or through automatic withdrawals, she ensures you have the knowledge to choose the most convenient option for you. Throughout the episode, Kerrie emphasizes the importance of consulting with a tax professional to ensure accuracy and avoid penalties. This episode is a must-listen for anyone looking to manage their estimated tax payments effectively and reduce the stress of tax season.

Key Takeaways:

• Importance of Estimated Tax Payments: Understand why estimated tax payments are crucial for those with income not subject to withholding.
• Who Should Make Payments: Learn about the different types of individuals who need to consider making estimated tax payments, from freelancers to retirees.
• Due Dates and Penalties: Get to know the quarterly deadlines and the consequences of missing these payments, including potential penalties.
• Calculation Methods: Discover how to calculate the amount you need to pay based on last year's tax liability or this year's estimated income.
• Payment Options: Explore the various methods available for making estimated tax payments, including online payments, mail, and automatic withdrawals.

Notable Quotes:

1. "Estimated tax payments are simply just prepayments of your income that the IRS expects you to make throughout the year."
2. "If you expect to owe at least $1,000 in taxes when you file your return and you haven't paid enough through your withholdings, you'll probably need to make estimated tax payments."
3. "The IRS wants its cut as you earn that income, not just at the end of the year when you file your tax return."
4. "Being proactive and taking care of your estimated tax payments ahead of time can help you avoid penalties and make tax season less stressful."
5. "Always reach out to a tax professional if you're unsure about your tax obligations to ensure you're doing everything correctly."

Resources:

• Root Planning Group