axes can be daunting, right? But what if I told you it doesn't have to be that way?
Picture yourself managing your estimated taxes with confidence and ease. I'm dedicated to making that dream a reality, turning estimated taxes from a burden into a breeze.
Here are the tips on how to estimate and pay your taxes:
The Basics of Estimated Taxes: If you're self-employed, own a corporation, or have income not subject to withholding, estimated taxes might be an essential part of your financial world.
Determining Your Income: Calculate your projected adjusted gross income (AGI), taxable income, deductions, and credits for the year. If your income is steady, last year's figures can be your guide.
Leverage the Safe Harbor Rule: Aim to pay at least 90% of this year's tax or 100% of last year's (110% if you're a high-income earner) to dodge underpayment penalties.
Adapt to Life's Changes: Major life changes or income fluctuations could mean adjusting your estimated tax payments.
Don't Miss the Deadlines: Remember the IRS payment periods - April 15, June 15, September 15, and January 15.
Harness the Power of Technology: Tools like the IRS's Tax Withholding Estimator can help nail down a more accurate estimate. Each financial situation is unique, and as a tax professional, I can ensure you're neither overpaying nor underpaying your taxes.