How Do You Pay Estimated Quarterly Taxes?
Most businesses, even small ones, need to pay estimated quarterly taxes to the IRS. You may also have to pay these taxes if you earn income in addition to your regular paycheck as an employee. Here is some information to help know if you need to pay estimated quarterly taxes and how to pay them. If you had any tax liability for last year’s income, you may have to pay estimated taxes for the following year. If you are not sure, you are safer to pay a quarterly estimated tax than to risk expensive penalties at the end of the year. To pay estimated quarterly taxes, you’ll use the 1040-ES form which can be found for free on the IRS site. Often you will receive your four forms — one for each quarter — in the mail if the IRS thinks you are likely to need them after filing the current year’s taxes. You will need to make estimated tax payments whether you are a sole proprietor, partner or a shareholder of an S corporation if you expect to owe at least $1000 in taxes in the coming year. You w
