How to pay quarterly taxes
One of the biggest struggles with quarterly taxes is not having cash on hand to pay them. Business owners will likely use their income to do things like pay creditors and make investments to grow the business. Business owners and independent contractors must remember that anything they earn is taxable income. They should set funds aside to pay the taxes due.
To determine how much you should pay each quarter, you’ll want to calculate your owed quarterly tax amounts. For individuals, figure out your estimated quarterly tax payments using Form 1040-ES. Individuals can use IRS Form 1040-ES to submit quarterly taxes. Corporations can use Form 1120-W to provide quarterly payments.
You can simplify your payment process by linking your bank account to EFTPS.gov, otherwise known as the electronic federal tax payment system.
States also have their own payment system where you can pay off your taxes due. You can set up a direct debit so that funds are withdrawn automatically. You can also pay with a credit card, although there is a service fee associated with doing so. The 2019 Quarterly Due Dates are:
- Q1: April 15 due date for income from January 1 to March 31
- Q2: June 15 due date for income from April 1 to May 31
- Q3: September 15 due date for income from June 1 to August 31
- Q4: January 15, 2020 due date for income from September 1 to December 31
In addition to implementing accounting software that can help manage your expenses and calculate your estimated taxes, be sure to keep in mind the following tips: