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Just a reminder for Couple Money readers who are entrepreneurs that next Tuesday estimated tax payments are due. If you haven't already get your numbers in order so you can make the correct payment for the last quarter's business.
When are Estimated Taxes Due?
They seem to sneak up at times, especially when you're doing well and are keeping busy, but estimated taxes are due on an almost quarterly basis. The good news is that you can plan ahead for it when you have the dates written on your calender (whether electronic or paper). In general the dates are:
- January 15th for the 4th quarter of the previous year
- April 15th for the 1st quarter of the current year
- June 15th for the 2nd quarter of the current year
- September 15th for the 3rd quarter of the current year
While the actual dates may vary if the 15 falls on a holiday or a weekend, you should have your tax payments ready in your account by then. That means your estimated tax payments for the 2012 tax year are due April 17, 2012, June 15, 2012, September 17, 2012, and January 15, 2013.
Payment Methods for Estimated Taxes
There are several ways to take care of your estimated taxes.
- Mail- Check the IRS to see which location is correct one for you.
- Phone – Electronic Federal Tax Payment System has phone lines to take your payments
- 1-800-555-4477 (businesses)
- Online –Electronic Federal Tax Payment System
I prefer to pay online as it’s quick and easy.If you want to find out how to enroll for EFTPS, check out my post on TurboTax’s blog to find out.
Make sure you calculate what you owe ahead of time. If you underpay your taxes, there are penalties and the IRS will send you the bill. Don't forget you also have to pay your state's taxes as well.
Thoughts on Paying Estimated Taxes
How many of you have estimated taxes due? How was last year for your business, better, worse, or about the same as 2010? What are your plans this year for getting your taxes done?
Photo Credit: alancleaver_2000