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It's a beautiful morning and I'm in my home office double checking the numbers. What fun! Seriously I'm spending an hour out of my day to make sure my estimated taxes for the first quarter in 2013 are paid for both North Carolina and federal government.
If you haven’t already sent in your payments you have until next week to get them submitted.
Why Pay Estimated Taxes?
While paying taxes isn't my idea of fun, it's a responsibility that I have as a self-employed person. According the IRS:
Estimated tax is used to pay both income tax and self-employment tax, as well as other taxes and amounts reported on your tax return. If you do not pay enough through withholding or estimated tax payments, you may be charged a penalty. If you do not pay enough by the due date of each payment period you may be charged a penalty even if you are due a refund when you file your tax return.
Since I don't have an employer that withholds my income from work, I have do this myself. Fortunately paying my taxes is a fairly quick process once I've done the math. I pay online through Electronic Federal Tax Payment System and North Carolina's own site.
While they are sometimes referred to as quarterly taxes, the due dates don't always line up as such. In general estimated taxes are due 4 times a year:
- January 15th – for the previous year's 4th quarter
- April 15th
- June 15th
- September 15th
Looking at the calender for 2013, the upcoming due dates are:
- Monday April 15th
- Monday June 17th
- Monday September 16th
- Wednesday January 15th, 2014
Payment Methods for Estimated Taxes
If this is the first time, you're paying your estimated taxes, there are several ways to handle it.
- 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 personally prefer to pay online as it’s quick, free, and easy.
Thoughts on Quarterly Taxes
How many of you have already taken care of your estimated taxes for the first quarter? How’s business going this year?
Photo Credit: 401k