Another Tax Deadline Is Just Around The Corner, But Here’s How You Can Prepare

September 4, 2019

taxes

Although April 15 is infamous for the panic it causes taxpayers across the country, that’s not the only tax deadline in the United States. Taxpayers who pay the IRS every quarter should write down September 16 in their calendars, as that is when their third payment is due.

Those who need to keep this date in mind are typically business owners, investors with a significant capital gain, and employees who have self-employed side jobs. Specifically, businesses with a C or S rating need to pay taxes on a quarterly basis, or every three months. Anyone who is self-employed full-time, such as freelancers and independent artists, typically pay quarterly as well so that they don’t have to shell out a huge sum at once. For the full 2019 tax year, the quarterly deadlines are April 15, June 17, Sept. 16 and Jan. 15, 2020. If any quarterly-payers miss these deadlines, they face a penalty from the IRS.

For any taxpayer to avoid a penalty from the IRS, they must pay at least 90% of the income taxes they owe for a given year. These income taxes make up about half of federal revenue, about $1.688 trillion, while about one-third of that revenue comes from payroll taxes. To avoid an underpayment penalty on their tax return, individuals must pay 100% of the tax liability from the prior year.

Anyone who pays quarterly taxes needs to pay careful attention to their tax payment schedule to meet the percentages above and stay in the IRS’s good graces. They also need to accurately count up the totals from their income sources to account for the right tax liability for the year. Once you have the right liability amount, you can determine how much of your money to set aside for quarterly tax payments.

This is when working with a CPA, or Certified Personal Account, is a smart financial choice. About 15% of all paper documents are misplaced and 7.5% are lost completely, according to the Gartner Group. Whether you’re a freelancer trying to keep track of the payments you need to make every quarter or you’re a business owner who needs to remember all of your many deadlines to file corporate tax returns, working with a CPA can help ensure that you don’t make costly tax mistakes. They can help you sort through the many confusing documents involved in filing your taxes while ensuring that you don’t pay any more than you need to.

Remember these deadlines and get professional help when you need it to have a successful end to your 2019 tax year.

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