Whether you like it or not, taxpaying is an inevitable obligation that everyone of has to carry – the purpose of which is not because we are blindly following somebody else’s whim, but rather because our taxes are what keeps our society rolling. Hence it’s a rather bittersweet responsibility. Of course you might not appreciate the idea that basically everyone, in essence, has an obligation of quarterly tax payments. Whether you are an employee with a regular job, or an independent contractor running your own business, you are responsible to make these payments. But the question that might be lingering in your heads right now is why and how. Read more at https://www.taxreturn247.com.au/
To start with, if you are a regular employee, this quarterly tax payment is most likely being withheld from you in your paycheck – so you need not to worry or hassle yourself with the know how. On the other hand, if you are managing your own industry or business, then you have the obligation of accomplishing this payment on your own capacity. If you are situated in the latter, then you would have to make quarterly tax payments four times a year, approximately on the following due dates: April 15, June 15, September 15, and January 15. The first step in accomplishing this payment is to fill out a Form 1040ES, which is used in paying estimated taxes on your income as well as self-employment tax.
As an additional information, form 1040ES is a simple payment voucher wherein you list down your names, social security number as well as yourCharts address. After having estimated such taxes, you then have to pay 25% of that amount each quarter. However, if you are not in any way liable to pay estimated taxes before a given due date, but later on you become liable prior to the next due date, then you only have to file for the quarter on which you have become liable.
As a final note on quarterly tax payments, in case you have over paid on your estimated taxes and you expect a refund, then you may just opt to carry it over in your next year’s estimated payments. Underpayment, on the other hand, might incur for you a tax penalty – the same applies to late payments.