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Quarterly taxes. How to pay?

How do you pay quarterly taxes? My spouse started a business last year and since it was her first year she didn't have to pay quarterly taxes and we ended up just paying taxes on our joint return. Her tax liability came out to about $500 or so.

Anyhow, since the beginning of the year, my wife has tracked all revenues, cogs, and expenses. We're preparing to do quarterly taxes and we did revenues minus cogs minus expense and it came out to around $16k or so. We multiplied this by 15.3% and it looks like we owe around $2k.

Where do we pay this and how do we know that this is accurate? I am a finance guy but I feel like a CPA might be worth the price but we're coming up close to the first deadline ...April 15 I believe. We live in Maryland btw if that means anything.

Smallbusiness | 👁 562 | Posted November 24, 2018 | Share on Facebook | Twitter | Google+

| Modified: November 24, 2018 | Author:

9 Comments

ronnevee 1 year ago

15.3% is only the fica taxes. You also need to remote your federal and state income taxes. To get the percentage, you will be calculate this off of your total household income. So if you are in the 12% bracket you will send in 27.3% of what she makes to the feds.

dontsettleforaverage 1 year ago

Isn't EFTPS.gov the same as doing direct estimated business payments through the IRS.gov site? Is there any difference for small business owners?

[deleted] 1 year ago

Get an accountant if you can find one at this late date. Your final returns are due April 17th plus your first quarter quarterly payments.

GrubsLife 1 year ago

Tax Accountant here... PM me.

LeftHello 1 year ago

Also 1040ES looks complicated but you really only need the payment vouchers at the bottom. One for every quarter, you just fill each out and send in a check with it. Doesn't have to be exact, but keep it close as you can.

Wowbaggerrr 1 year ago

It's very easy, don't worry! Go to eftps.gov to pay her estimated quarterly taxes. You'll register her business and then it's a quick process every quarter. There's a drop-down menu, just be sure to choose Estimated 1040ES. As far as knowing how much to pay them...I made myself a spreadsheet a few years back that takes out the correct % each month. (In total, for me it takes about 38%) I update it every year once the gov releases the new tax rates. You can look these up online and make one that fits your state, or hire someone to do it for you. At the end of the year, when you go to your tax person, they'll take care of any discrepancies. (Just don't seriously underestimate your quarterly returns, there can be fines for that.)

Region67 1 year ago

Seconded, I do web design/dev work and used Visor. Was pretty easy, although a little on the high side. But I see it as peace of mind expense.

thalanos42 1 year ago

Federal estimated taxes are done using form 1040ES. More details are available in IRS publication 505. Be sure to check your state information too, since many states also require you to pay estimated taxes during the year.

BoBoZoBo 1 year ago

CPA


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