The short answer is--probably, because paying quarterly taxes (or “estimated payments”) is a good idea if you’re making a profit in your business. If your income is higher than your business deductions, then you’re making a profit.
When you’re an independent contractor, you’re responsible for paying taxes on your own. The IRS will expect you to make quarterly tax payments if you expect to owe $1,000 or more in taxes on your income in a given year. The IRS requirements on quarterly taxes can be found here.
That being said, it’s possible that you’re already paying enough in taxes during the year. For example, if you have a full-time or part-time job where your taxes are already being withheld for you, and you tend to get a tax refund, then you may not need to pay quarterly taxes.
You can read more about how to calculate and pay quarterly taxes here!
Due to the COVID-19 pandemic the IRS has moved the Q1 quarterly tax deadline to July 15th, 2020!
When are quarterly taxes due?
1st Quarter - July 15, 2020
2nd Quarter - June 15, 2020
3rd Quarter - September 15, 2020
4th Quarter - January 15, 2021
Comments
0 comments
Article is closed for comments.