There are few things more rewarding and satisfying than being your own boss. As an entrepreneur you are able to shape your future in ways that are not possible while in the employment of others. However, there are milestones that must be adhered to. One of these is attending to the self-employment taxes for the first quarter of 2019. Here are some things to know that should help you accomplish this task.
• The United States operates on a ‘pay as you go’ tax system. People who are employed by someone else usually have their taxes taken out from their paychecks throughout the year. This tends to be the most painless approach to meeting our tax obligations. However, if you are a freelancer, contractor or entrepreneur, then you may be required to pay quarterly taxes. To overlook this may put you in a position where fines accrue.
• Quarterly taxes are just that – taxes that are expected to be paid at the end of each quarter – with deadlines that fall a couple weeks after the close of the quarter.
• There are multiple tools available to estimating your quarterly taxes. Two of the more popular programs are QuickBooks and TurboTax. However, you may want to work with a tax expert who can help you navigate the tax requirements of a self-owned enterprise.
• The previously mentioned programs have a method that allows you to file your estimated quarterly taxes electronically. That is a shortcut that saves valuable time and, in the end, money. E-filing is the most popular way to prepare and forward taxes for most Americans today. There is a program called the Electronic Federal Tax Payment System (EFTPS) that will allow you to make your payments online. And the best thing about this? It’s free!
If you have questions about self-employment taxes or related issues, contact the experts at ORT Accounting Services. We are available year-round – not just at tax time!
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