Whether you’re filing as self-employed, a sole proprietor or an individual, you may be subject to paying an estimated tax prior the end of the year. What are estimated taxes, you ask? In the U.S., we have a “pay as you go” tax system. This means that if your taxes are not being withheld through an employer, you’re expected to pay estimated taxes, especially if you anticipate owing $1,000 or more for your annual tax liability.
This Year’s Deadlines
2017 is rapidly coming to an end and we’re already well into the final tax quarter of the year. Remember, your final federal quarterly tax payment is due to the IRS by January 15, 2018. If you’re a California resident, it is very important to note that the state tax payment is due December 15, 2017. This can be a little tricky since the year or quarter won’t have actually ended yet.
If you live in hurricane-affected states and territories including Texas, Florida, U.S. Virgin Islands and Puerto Rico, you may qualify for an automatic tax extension for the final quarter payment. Consult with a professional tax advisor and take any steps you need to if you want to extend your personal deadline to January 30, 2018.
How to Pay Estimated Tax Payments
Once you’ve figured out what you owe, then you need to make the payments. Some software will allow you to electronically file your payments. Visit the IRS’s website for specific payment addresses based on the state where you live.
Software can be helpful; however, it’s not foolproof and you want to make sure you are accurate when dealing with taxes. The safest bet is always to consult with a tax advisor, such as the small business tax experts of Ferguson, Timar & Company. We’ll help you understand your tax liabilities and calculate any estimated tax payments, whether it’s for this final quarter of 2017 or beyond. We can also help you make the right tax decisions and deal with estimated tax payments. Contact us today to set up a tax consultation.