How to Calculate Your Estimated Quarterly Taxes?
What are estimated taxes? These are taxes that self-employed individuals and business owners will have to pay to the IRS throughout the year if they expect to owe tax of at least $1,000.
How often do you need to pay your estimated taxes and how do you pay them? For estimated tax purposes, the year is divided into four payment periods. You will be using Form 1040-ES to send to the IRS along with your payment. You can find Form 1040-ES to prepare the payment through the link below.
https://lnkd.in/eA7fV_9 In this video, we have an example of how to calculate estimated payments for a business owner. https://lnkd.in/gW9BF2Y3 We’ll briefly touch on what you need to know about estimated taxes and then walk through the process of filling out the Form 1040-ES in hopes to help you out before the DEADLINE. The estimated payment is due on January 18th, 2022, and is the FINAL payment for 2021 estimated tax liabilities.