What you need to know about quarterly taxes
Quarterly taxes can cause quite a lot of stress in a life. Quarterly taxes means that you're not paying taxes once a year-you're paying them four times a year. Four times a year you're going through the agony of paying taxes. Luckily, it's only a very specific kind of person that has to do this.
If you're a new business owner, that is, if you're the sole proprietor of a business, the IRS expects that you pay taxes quarterly. You've got to keep careful account of all that you're earning. If you don't, the government can charge you penalties for not paying and worse. It's easy to know if you have to pay taxes for a certain quarter-so long as you've made money during that quarter, you have to pay.
What sorts of taxes do I have to pay?
You have to pay (1) your federal income tax, (2) Medicare tax, and (3) your social security tax, which are all three taken together known as self-employment tax.
When do I pay them?
You pay them April 15, June 15, September 15, and January 15.
Now, the details of what you have to pay, what percentages, how they change according to your income, and so forth, are all conveniently available on the Internet. Let us advice you to read up on them immediately. It's very important that you do so, because when you're talking about quarterly taxes you may as well be talking about taxes period. That is, they're of the same importance, so you should take them just as seriously.
How do I learn more about this?
Like we mentioned before, the Internet is a great tool for learning more about quarterly taxes. Just type "quarterly taxes" into your favorite search engine and a wholehost of helpful sites will come up. They'll give you all the details concerning what you pay if you make X, what you pay if you make Y, and so and so forth. Read, read, read. Do your research, do your homework.
OK, so I've read, and I'm still confused. Is there anything else I can do?
Yes. You can talk to a tax professional. Contact one immediately if it's really worrying you. Your tax professional will not only give you the same information the Internet will, he'll personalize it for you and tailor it to you and take as long as you need with you until you're worries and fears are gone.
You find a good tax professional the same way you find anything else, that is, by a combination of methods. Again, you can turn to the Internet, going to those sites that rate tax professionals, lawyers, and such, and contact the highest rated and explain your situation and find out about fees.
You can also use word of mouth. As a small business owner, it's likely that you know other small business owners. Talk to them, ask them how they do it, ask them who they use come tax time.
Then, there's the good old phonebook. The yellow pages have lots and lots of rooms for tax professionals, and usually they'll give you at least a consultation for free. So-consult with them! Find out what you need to know. Knowing, as they say, is half the battle, and it will relieve your mind like nothing else. Yes, it's a pain to have to pay taxes quarterly, but it's a rule of life. Not everyone has to do it, but then again not everyone is lucky enough to own their own business.
The things you should take from this article are simple. If you own your own business, or work for a business that pays you as if you do, you must pay taxes four times per year. The amount you pay will depend on the amount you make. Use all the resources at your disposal to discover more about this complicated process, follow through on your discoveries, and you'll be well on your way to habitually paying these taxes instead of sweating through them.