Tuesday, June 25, 2013

Tax Series #1: How do I make estimated tax payments?

As mentioned on our taxes page, taxes are technically due in four quarterly installment throughout the year (not one lump sum on April 15th). Most people don’t even think about this because it’s automatically done for you by your employer before the money even hits your bank account. But if you’re self-employed or have income from other sources, you may have to make these “estimated payments.” They’re estimated because you don’t actually know how much you’ll really owe until you file your tax return and come up with the final amount.

How much do I need to pay?