Dear taxpayer, winter is coming! Well, more like autumn, & also the deadlines for:

• Federal Tax returns on October 15
• Employer Q3 tax return on October 31
• Q3 estimated tax payments due date was on September 15

Should you pay Quarterly estimated taxes?

You may, if:

• You’re self-employed Your taxes are not withheld from your paycheck by your employer

Also, you should make payments if both of these apply:

1. You expect to owe at least $1,000 in taxes for the year 2021, after subtracting your withholdings and tax credits.
2. You expect your withholdings and tax credits to be less than the smallest of:
3. 90% of the tax to be shown on your 2021 tax return OR
4. 100% of the tax shown on your 2020 tax return, covering all 12 months of this year.

Which types of income normally pay estimated taxes?

Those not subject to withholding, such as:

• Cash or contractor payments,
• Interests, dividends, capital gains,
• Alimony,
• Cryptocurrency,
• Rental income.

Are there special rules? Yes, for those with income unevenly distributed through the year as farmers, fishermen, (IRS Publication 505, Chapter 2, page 27) recently disabled people, disaster victims.

Are there underpayment penalties?

Yes! Better to keep those payments current to avoid them.

To see if you owe a penalty, use Form 2210.

How to calculate my estimated taxes?

You can check Publication 505 to know more about estimated tax rules. Then, file Form 1040-ES for individuals or Form 1120-W for Corporations.

How to easily calculate my quarterly estimated taxes?

The easiest way is with the help of a dedicated IOOGO Accountant.

Also, if you’re an IOOGO Accounting annual subscriber, you get the Federal Tax Filing service included in your package!

If you want to know more about these services, you can visit the IOOGO Accounting page or Schedule a Free Consultation.IOOGO Inc.

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